DEMAND-SIDE MANAGEMENT Annual Report

Transcription

1 DEMAND-SIDE MANAGEMENT 2017 Annual Report MARCH

2 SAFE HARBOR STATEMENT This document may contain forward-looking statements, and it is important to note that the future results could differ materially from those discussed. A full discussion of the factors that could cause future results to differ materially can be found in Idaho Power s filings with the Securities and Exchange Commission. Printed on recycled paper

3 Idaho Power Company Table of Contents TABLE OF CONTENTS Executive Summary...1 Introduction...3 Annual DSM Expense Review Filing and Compliance with Commission Orders...4 DSM Programs Performance...5 Program Evaluation Approach...11 Cost-Effectiveness...11 Energy Efficiency Advisory Group...13 Idaho Power Field Staff...15 Future Plans for DSM Programs...16 DSM Annual Report Structure Program Activity...18 DSM Expenditures...18 Marketing...20 Cost-Effectiveness Results...33 Customer Satisfaction...35 Evaluations...37 Residential Sector Overview...38 A/C Cool Credit...40 Easy Savings...43 Educational Distributions...46 Energy Efficient Lighting...57 Energy House Calls...60 Fridge and Freezer Recycling Program...64 Heating & Cooling Efficiency Program...69 Home Energy Audit...75 Home Improvement Program...81 Multifamily Energy Savings Program...84 Oregon Residential Weatherization...87 Rebate Advantage...89 Residential New Construction Pilot Program (ENERGY STAR Homes Northwest)...92 Shade Tree Project...96 Simple Steps, Smart Savings Page i

4 Table of Contents Idaho Power Company Weatherization Assistance for Qualified Customers Weatherization Solutions for Eligible Customers Commercial/Industrial Sector Overview Commercial and Industrial Energy Efficiency Program Flex Peak Program Oregon Commercial Audits Irrigation Sector Overview Irrigation Efficiency Rewards Irrigation Peak Rewards Other Programs and Activities Green Motors Initiative Idaho Power s Internal Energy-Efficiency Commitment Local Energy Efficiency Funds Market Transformation Northwest Energy Efficiency Alliance Program Planning Group Regional Technical Forum Residential Energy Efficiency Education Initiative University of Idaho Integrated Design Lab Glossary of Acronyms Table 1. LIST OF TABLES 2017 DSM programs by sector, operational type, location, and energy savings/demand reduction...10 Table program sector summary and energy usage/savings/demand reduction...11 Table funding source and energy savings...18 Table DSM program expenditures by category...19 Table DSM program incentives totals by program type and sector...19 Table 6. Cost-effectiveness summary by energy efficiency program...35 Table residential program summary...38 Table 8. H&CE Program incentives in Table WAQC activities and Idaho Power expenditures by agency and county Page ii

5 Idaho Power Company Table of Contents Table WAQC base funding and funds made available Table WAQC review of measures installed Table savings values for WAQC program Table commercial/industrial program summary Table customer satisfaction related to C&I sector programs Table Custom Projects annual energy savings by primary project measure Table irrigation program summary Table 17. Irrigation Peak Rewards program load reduction for each 2017 event by program option Table 18. Irrigation Peak Rewards 2017 potential realization rate Table Green Motor Initiative savings, by sector and state LIST OF FIGURES Figure 1. Idaho Power service area map...3 Figure 2. Peak demand-reduction capacity and demand response expenses, (MW and millions [$])...5 Figure 3. Annual energy savings and energy efficiency program expenses, (MWh and millions [$])...6 Figure 4. Total DSM expense history, including energy efficiency, demand response, and NEEA expenses, (millions [$])...6 Figure 5. DSM expense history by program type, (millions [$])...7 Figure 6. Figure 7. Annual incremental energy efficiency savings (amw) compared with IRP targets, Annual cumulative energy efficiency savings (amw) compared with IRP targets, Figure DSM program expenditures by category...19 Figure DSM program incentives by segment and sector...20 Figure 10. Idaho Power customers share energy efficiency information on social media...21 Figure 11. Idaho Power Ways to Save website screenshot...22 Figure 12. Idaho Power appearances on KPVI and KTVB...23 Figure 13. Example of energy efficiency awareness campaign ad...24 Figure 14. Example of an Idaho Power digital ad...25 Figure 15. The 2017 the Smart-Saver Pledge bill insert...28 Page iii

6 Table of Contents Idaho Power Company Figure 16. Example of Commercial and Industrial Energy Efficiency Program ad...30 Figure 17. Check presentations to Ash Grove Cement and Baker & Murakami Produce Company...32 Figure 18. Customers needs met or exceeded (percent), Figure 19. Photo of residential ESK...47 Figure 20. Bookmark in English and Spanish to help promote the ESKs...50 Figure 21. Social media post from realtor about ESKs...51 Figure 22. Instagram post about the Student Energy Efficiency Kit Program...52 Figure participation in the Energy House Calls program...61 Figure Energy House Calls participation by region...61 Figure Energy House Calls participation by job type...62 Figure Fridge and Freezer Recycling Program participation by year...65 Figure 27. Fridge and Freezer Recycling Program Facebook Graphic...66 Figure 28. How customers heard about Fridge and Freezer Recycling Program in Figure 29. H&CE Program digital ad...72 Figure 30. Home Energy Audit summary of participating homes in 2017, by county...76 Figure 31. Home Energy Audit summary of space and water heating fuel types, Figure 32. Home Energy Audit measures installed in participating homes in Figure 33. Example of Home Energy Audit program ad...78 Figure 34. Multifamily Energy Saving Program door hanger...85 Figure 35. Digital ad on Snake River Valley Building Contractors Association app...93 Figure 36. Social media post for Weatherization Solutions for Eligible Customers program Figure 37. Tiny house Figure Winter Energy Efficiency Guide Appendix 1. LIST OF APPENDICES Idaho Rider, Oregon Rider, and NEEA payment amounts (January December 2017) Appendix DSM expenses by funding source (dollars) Appendix DSM program activity Appendix 4. Historical DSM expense and performance, Appendix DSM program activity by state jurisdiction Page iv

7 Idaho Power Company Table of Contents LIST OF SUPPLEMENTS Supplement 1: Cost-Effectiveness Supplement 2: Evaluation Page v

8 Table of Contents Idaho Power Company Page vi

9 Idaho Power Company Executive Summary EXECUTIVE SUMMARY In 2017, Idaho Power had its second largest energy savings year since 2002, when the company revitalized its energy efficiency programs and began the Idaho and Oregon Energy Efficiency Riders (Rider) to fund the pursuit of cost-effective energy efficiency. Energy efficiency and demand response programs provide economic and operational benefits to the company and its customers and support the wise use of energy by Idaho Power customers. Idaho Power s portfolio of energy efficiency program energy savings for 2017 increased to 191,471 megawatt-hours (MWh), including the estimated savings from the Northwest Energy Efficiency Alliance (NEEA), enough energy to power almost 17,000 average homes a year in Idaho Power s service area. This is a 12-percent increase from the 2016 energy savings of 170,792 MWh. In 2017, the company s energy efficiency portfolio was cost-effective from both the total resource cost (TRC) test and the utility cost (UC) test perspectives with ratios of 2.50 and 2.75, respectively. The portfolio was also cost-effective from the participant cost test (PCT) ratio, which was The savings from Idaho Power s energy efficiency programs alone, excluding NEEA savings, increased to 167,819 MWh in 2017 from 146,177 MWh in Idaho Power successfully operated all three of its demand response programs in The total demand reduction achieved from the company s programs was 383 megawatts (MW) from an available capacity of 394 MW. Energy efficiency and demand response are important aspects of Idaho Power s resource planning process. Idaho Power s 2017 achievements in energy savings exceeded the annual savings target identified in Idaho Power s 2017 Integrated Resource Plan (IRP). Total expenditures from all funding sources of demand-side management (DSM) activities increased by nearly 12 percent, to $48 million in 2017 from $43 million in DSM program funding comes from the Idaho and Oregon Riders, Idaho Power base rates, and the annual power cost adjustment (PCA). The company s demand response incentives are recovered through base rates and the annual PCA in Idaho, while Oregon demand response incentives are funded through the Oregon Rider. With a goal of using customers funds wisely, Idaho Power employees and leaders strive to provide conscientious, prudent, and responsible action and activities that result in cost-effective energy efficiency. In 2017, Idaho Power continued to expand the reach and frequency of its residential energy efficiency campaign with digital and print marketing tactics, including an increase in social media activity. The company also continued promoting the three Commercial and Industrial (C&I) Energy Efficiency Program options as a single program. Idaho Power continued to use stakeholder input to enhance its programs. The company met regularly with its Energy Efficiency Advisory Group (EEAG) and individual customers seeking input on program improvement. To find growth in the program portfolio, the company relied on its Program Planning Group (PPG) that was initiated in 2014, NEEA s Regional Emerging Technology Advisory Committee (RETAC), and E Source resources to fill the pipeline with ideas for offerings to its energy efficiency Page 1

10 Executive Summary Idaho Power Company programs. Additionally, Idaho Power continued to refine its program processes through evaluations, customer surveys, and research to make it easier for its customers to participate. In 2017, Idaho Power continued to distribute Energy-Saving Kits (ESK) at no additional cost to customers on request. By the end of the year, almost 51,000 ESKs were shipped to customer homes: 27,458 kits to homes with electric water heaters and 23,281 to homes with alternate-source water heaters. Idaho Power replaced the high-efficiency showerheads in the electric kits with an integrated high-efficiency showerhead with a thermostatic shower valve (TSV). TSVs reduce the behavioral waste caused by letting the water run unchecked while it warms up. With a TSV, water flow is automatically reduced to a trickle when the water reaches 95 F, sending a signal that the water is ready. Also in 2017, Idaho Power began development of an energy-savings kit for commercial customers and expanded its cohort programs to include the Continuous Energy Improvement (CEI) Cohort for Schools. This provides a review of the company s DSM activities and finances throughout 2017 and outlines Idaho Power s plans for future DSM activities. This report also satisfies the reporting requirements set out in the Idaho Public Utilities Commission s (IPUC) Order Nos and Idaho Power will provide a copy of the report to the Public Utility Commission of Oregon (OPUC) under Oregon Docket Utility Miscellaneous (UM) No Page 2

11 Idaho Power Company Introduction INTRODUCTION Energy efficiency and demand response provide economic and operational benefits to the company and its customers; and in 2017, Idaho Power continued to pursue all cost-effective energy efficiency across its service area. Idaho Power provides information and programs to ensure customers have opportunities to learn about their energy use, how to use energy, and participate in programs. This report focuses on Idaho Power s demand-side management (DSM) activities and results for 2017 and previews planned activities for The appendices provide historical and detailed information on the company s DSM activities and detailed financial information from 2002 through Supplement 1: Cost-Effectiveness provides detailed cost-effectiveness data and Supplement 2: Evaluations provides copies of Idaho Power s evaluations, reports, and research conducted in Idaho Power s main objectives for DSM programs are to achieve prudent, cost-effective energy efficiency savings and to provide an optimal amount of demand reduction from its demand response programs as determined through the Integrated Resource Plan (IRP) planning process. Idaho Power considers cost-effective energy efficiency the company s least-cost resource and pays particular attention to ensuring the best value to Idaho Power s customers. Idaho Power strives to provide customers with programs and information to help them manage their energy use wisely. The company achieves these objectives through the implementation and careful management of programs that provide energy and demand savings and through outreach and education. For economic and administrative efficiency and to reduce customer confusion, Idaho Power endeavors to implement identical programs in its Idaho and Oregon service areas. Idaho Power has been locally operated since 1916 and serves more than 545,000 customers throughout a 24,000-square-mile area in southern Idaho and eastern Oregon. Figure 1. Idaho Power service area map Page 3

12 Introduction Idaho Power Company Idaho Power s energy efficiency programs are available to all customer sectors in Idaho Power s service area and focus on reducing energy use by identifying homes, buildings, equipment, or components for which an energy-efficient design, replacement, or repair can achieve energy savings. Some energy efficiency programs include behavioral components. For example, the Residential Energy Efficiency Education Initiative, the Smart-Saver Pledge, the School Cohort, and the Home Energy Reports Pilot Program, which began in 2017, all have behavioral components associated with them. Savings from energy efficiency programs are measured in terms of energy savings on a kilowatt-hour (kwh) or megawatt-hour (MWh) basis. These programs usually supply energy savings throughout the year at different times depending on the energy efficiency measure put in place. Idaho Power shapes these savings based on the end use to estimate energy reduction at specific times of the day and year. Idaho Power s energy efficiency offerings include programs in residential and commercial new construction (lost-opportunity savings); residential and commercial retrofit applications; and irrigation and industrial system improvement or replacement. Idaho Power s custom incentives offer a wide range of opportunities to its irrigation, industrial, large-commercial, governmental, and school customers to execute energy saving projects. Energy efficiency program and demand response funding comes from the Idaho and Oregon Riders (Rider), Idaho Power base rates, and the annual power cost adjustment (PCA) in Idaho. Idaho incentives for the company s demand response programs are recovered through base rates and the annual PCA, while Oregon demand response incentives are funded through the Oregon Rider. Total expenditures from all funding sources on DSM-related activities increased by about 12 percent, from $43 million in 2016 to $48 million in Idaho Power started its modern demand response programs in 2002, and now has over 10 percent of its all-time peak load available under demand response programs. The goal of demand response at Idaho Power is to minimize or delay the need to build new supply-side peaking resources. The company estimates future capacity needs through the IRP planning process and plans resources to mitigate any system peak deficits that exist. Demand response programs are measured by the amount of demand reduction, in megawatts (MW), available to the company during system peak periods. Annual DSM Expense Review Filing and Compliance with Commission Orders On March 15, 2017, Idaho Power filed Case No. IPC-E with the Idaho Public Utilities Commission (IPUC) requesting an order finding the company had prudently incurred $40,242,182 in DSM expenses in 2016, including $31,321,862 in Rider expenses, $7,059,420 in demand response program incentives, and $1,860,901 in cumulative incremental labor expenses incurred from 2011 through In Order No , dated October 16, 2017, the IPUC deemed $31,304,965 in Rider expenses, $7,059,420 in demand response program incentives, and $1,860,901 in labor expense as prudently incurred. Page 4

13 Idaho Power Company Introduction On March 28, 2017, the IPUC issued Order No directing the company to 1) decrease the Rider percentage from 4 percent to 3.75 percent, effective April 1, 2017; 2) refund $13 million of previously collected Rider funds through the 2017/2018 PCA mechanism, effective June 1, 2017; and 3) eliminate the annual transfer of $4 million of Rider funds through the PCA. DSM Programs Performance The 2017 savings consisted of 65,506 MWh from the residential sector, 85,425 MWh from the commercial/industrial sector, and 16,888 MWh from the irrigation sector. This represents a 15-percent increase from 2016 program savings. The industrial Custom Projects option in the Commercial and Industrial (C&I) Energy Efficiency Program contributed 27 percent of Idaho Power s direct program savings, while the residential sector Energy Efficient Lighting and Educational Distributions programs contributed 90 percent of the residential savings and 35 percent of Idaho Power s direct program savings. Figure 2. Peak demand-reduction capacity and demand response expenses, (MW and millions [$]) Page 5

14 Introduction Idaho Power Company Figure 3. Annual energy savings and energy efficiency program expenses, (MWh and millions [$]) Figure 4. Total DSM expense history, including energy efficiency, demand response, and NEEA expenses, (millions [$]) Page 6

15 Idaho Power Company Introduction Figure 5. DSM expense history by program type, (millions [$]) *Idaho Power savings include NEEA non-code** savings. **NEEA codes and savings were removed because they are not included in IRP targets. Figure 6. Annual incremental energy efficiency savings (amw) compared with IRP targets, Page 7

16 Introduction Idaho Power Company *Idaho Power savings include NEEA non-code savings Figure 7. Annual cumulative energy efficiency savings (amw) compared with IRP targets, Energy efficiency and demand response is an important aspect of Idaho Power s resource planning process. Idaho Power s 2017 achievements in energy savings exceeded the annual savings target identified in Idaho Power s 2017 Integrated Resource Plan. On a cumulative basis, the company s energy savings have exceeded the IRP targets every year since In 2017, Idaho Power participated in or sponsored 66 outreach activities, including events, presentations, trainings, and other activities. Idaho Power customer representatives throughout the service area delivered another 167 presentations to local organizations addressing energy efficiency programs and wise energy use. In 2017, Idaho Power s community education team provided 143 presentations on The Power to Make a Difference to 3,826 students and 98 classroom presentations on Saving a World Full of Energy to 2,296 students. The community education representatives and other staff also completed 30 senior citizen presentations on energy efficiency programs and shared information about saving energy with 890 senior citizens in the company s service area. Since 2008, commercial and industrial training activities have informed and educated commercial and industrial customers regarding energy efficiency, increased awareness of and participation in existing energy efficiency and demand response programs, and enhanced customer satisfaction regarding the company s energy efficiency initiatives. In 2017, Idaho Power delivered 10 technical classroom-based training sessions. Topics included: Introduction to Unitary Air Conditioning Systems; Advanced Unitary Air Conditioning Systems; Commercial and Industrial Motor Efficiency; Variable Frequency Drives and Energy Efficiency; Energy Efficiency of Chilled Water Systems; Energy Efficiency of Cooling Towers; and Commercial and Industrial Energy Efficient Lighting Systems. Idaho Power continued its internal commitment to energy efficiency in The company continued to upgrade the company s substation buildings across its service area. Efforts in 2017 also focused on Page 8

17 Idaho Power Company Introduction providing energy-efficient heating and cooling. Renovation projects continued at the Corporate Headquarters (CHQ) in downtown Boise in 2017 with a project to complete exchanging T-12 parabolic lighting fixtures with LED lighting. Remodels continued to incorporate energy efficiency measures, such as lower partitions, lighting retrofits, and automated lighting controls. Demand Response Programs In summer 2017, Idaho Power had a combined maximum actual non-coincidental load reduction from all three programs of 383 MW at the generation level. The amount of capacity available for demand response varies based on weather, time of year, and how programs are used and managed. The 2017 capacity of demand response programs was 394 MW. The demand response capacity is calculated using total enrolled MW from participants with an expected maximum realization rate for those participants. This maximum realization rate is not always achieved for every program in any given year. The maximum capacity for the Irrigation Peak Rewards program is based on the maximum reduction possible during the hours within the program season. In 2017, the maximum capacity aligned with the program dispatch of 318 MW on July 6. For the Flex Peak Program, the maximum capacity is assumed to be the maximum realized reduction, and for the A/C Cool Credit program, the capacity is calculated based on the number of active participants multiplied by maximum per-unit reduction ever achieved. Idaho Power has forecasted through the IRP that demand response capacity is not currently needed. However, under the terms of IPUC Order No and Public Utility Commission of Oregon (OPUC) Order No the company has continued to maintain these programs and use them at least three times per season. Energy Efficiency Programs Idaho Power s portfolio of energy efficiency program energy savings for 2017 increased to 191,471 MWh, including the estimated Northwest Energy Efficiency Alliance (NEEA) savings. This is a 12-percent increase from the 2016 energy savings of 170,792 MWh and enough to power almost 17,000 average-sized homes a year in Idaho Power s service area. In 2017, the company s energy efficiency portfolio was cost-effective from both the total resource cost (TRC) test and the utility cost (UC) test perspectives with ratios of 2.50 and 2.75, respectively. The savings from Idaho Power s energy efficiency programs alone (excluding NEEA savings) increased to 167,819 MWh in 2017 from 146,177 MWh in Page 9

18 Introduction Idaho Power Company Table DSM programs by sector, operational type, location, and energy savings/demand reduction Program by Sector Operational Type State Residential Savings/Demand Reduction A/C Cool Credit... Demand Response ID/OR 29 MW Easy Savings... Energy Efficiency ID 280 MWh Educational Distributions... Energy Efficiency ID/OR 21,187 MWh Energy Efficient Lighting... Energy Efficiency ID/OR 37,765 MWh Energy House Calls... Energy Efficiency ID/OR 429 MWh Fridge and Freezer Recycling Program... Energy Efficiency ID/OR 499 MWh Heating & Cooling Efficiency Program... Energy Efficiency ID/OR 1,139 MWh Home Energy Audit... Energy Efficiency ID 175 MWh Home Improvement Program... Energy Efficiency ID 416 MWh Multifamily Energy Savings Program... Energy Efficiency ID/OR 618 MWh Oregon Residential Weatherization... Energy Efficiency OR 2 MWh Rebate Advantage... Energy Efficiency ID/OR 214 MWh Residential New Construction Pilot Program (ENERGY STAR Homes Northwest)... Energy Efficiency ID/OR 608 MWh Shade Tree Project... Other Programs and Activities ID n/a Simple Steps, Smart Savings... Energy Efficiency ID/OR 900 MWh Weatherization Assistance for Qualified Customers... Energy Efficiency ID/OR 670 MWh Weatherization Solutions for Eligible Customers... Energy Efficiency ID 605 MWh Commercial/Industrial Commercial and Industrial Efficiency Program Custom Projects... Energy Efficiency ID/OR 44,756 MWh New Construction... Energy Efficiency ID/OR 17,354 MWh Retrofits... Energy Efficiency ID/OR 23,162 MWh Flex Peak Program... Demand Response ID/OR 36 MW Green Motors Industrial... Energy Efficiency ID/OR 144 MWh Oregon Commercial Audits... Energy Efficiency OR n/a Irrigation Green Motors Irrigation... Energy Efficiency ID/OR 64 MWh Irrigation Efficiency Rewards... Energy Efficiency ID/OR 16,824 MWh Irrigation Peak Rewards... Demand Response ID/OR 318 MW All Sectors Northwest Energy Efficiency Alliance... Market Transformation ID/OR 23,652 MWh Page 10

19 Idaho Power Company Introduction Table program sector summary and energy usage/savings/demand reduction Energy Efficiency Program Impacts a Idaho Power System Sales Program Expenses Energy Savings (kwh) Peak-Load Reduction (MW) b Sector Total (MWh) Percentage of Energy Usage Number of Customers Residential... $ 13,191,626 65,506,319 5,401,535 37% 453,605 Commercial/Industrial... 15,457,351 85,425,027 7,461,169 51% 70,529 Irrigation... 2,475,677 16,888,049 1,771,813 12% 20,932 Market Transformation... 2,698,756 23,652,000 Demand Response... 8,817,529 n/a 383 Direct Overhead... 2,187,151 n/a Total Direct Program Expenses... $ 44,828, ,471, ,634, % 545,066 a Energy, average energy, and expense data have been rounded to the nearest whole unit, which may result in minor rounding differences. b Includes 9.7 percent peak line loss assumptions. Program Evaluation Approach Idaho Power considers program evaluation an essential component of its DSM operational activities. The company uses third-party contractors to conduct impact, process, and other evaluations on a scheduled and as-required basis. Third-party contracts are generally awarded using a competitive bid process managed by Idaho Power s Supply Chain department. In some cases, research and analysis is conducted internally and managed by Idaho Power s Research and Analysis team within the Customer Relations and Energy Efficiency (CR&EE) department. Third-party evaluations are specifically managed by the company s energy efficiency evaluator. Idaho Power uses industry standard protocols for its internal and external evaluation efforts, including the National Action Plan for Energy Efficiency Model Energy Efficiency Program Impact Evaluation Guide, the California Evaluation Framework, the International Performance Measurement and Verification Protocol (IPMVP), the Database for Energy Efficiency Resources, and the Regional Technical Forum s (RTF) evaluation protocols. The company also supports regional and national studies to promote the ongoing cost-effectiveness of programs, the validation of energy savings and demand reduction, and the efficient management of its programs. Idaho Power considers primary and secondary research, cost-effectiveness analyses, potential assessments, impact and process evaluations, and customer surveys to be important resources in providing accurate and transparent program-savings estimates. Idaho Power uses recommendations and findings from evaluations, research, and industry best practices to continuously refine its DSM programs. Historical evaluation plans, plans for 2018, and copies of 2017 evaluations and research can be found in Supplement 2: Evaluation. Cost-Effectiveness Idaho Power considers cost-effectiveness of primary importance in the design, implementation, and tracking of energy efficiency and demand response programs. Idaho Power s energy efficiency and Page 11

20 Introduction Idaho Power Company demand response opportunities are preliminarily identified through the IRP process. Idaho Power uses third-party energy efficiency potential studies to identify achievable cost-effective energy efficiency potential that is added to the resources included in the IRP. Because of Idaho Power s diversified portfolio of programs, most of the new potential for energy efficiency in its service area is based on additional measures to be added to existing programs, rather than developing new programs. Prior to the actual implementation of energy efficiency or demand response programs, Idaho Power performs a cost-effectiveness analysis to assess whether a potential program design or measure will be cost-effective from the perspective of Idaho Power and its customers. Incorporated in these models are inputs from various sources that use the most current and reliable information available. Idaho Power s goal is for all programs to have benefit/cost (B/C) ratios greater than one for the TRC test, UC test, and participant cost test (PCT) at the program and measure level where appropriate. Each cost-effectiveness test provides a different perspective, and Idaho Power believes each test provides value when evaluating program performance. If a measure or program is found to be not costeffective from one or more of the three tests, Idaho Power assesses the program or measure and runs the cost-effectiveness calculations under a variety of scenarios. There are many assumptions when calculating the cost-effectiveness of a given program or measure. For some measures within the programs, savings can vary based on factors, such as participation levels or the participants locations. For instance, heat pumps installed in the Boise area will have less savings than heat pumps installed in the McCall area. If program participation and savings increase, fixed costs, such as labor and marketing, are distributed more broadly, and the program cost-effectiveness increases. When a program or measure is shown to be not cost-effective, Idaho Power works with the Energy Efficiency Advisory Group (EEAG) to obtain input before making its determination on continuing or discontinuing an offering. If the measure or program is indeed offered, the company explains to EEAG and stakeholders why the measure or program was implemented or continued and the steps the company plans to take to improve its cost-effectiveness. The company believes this aligns with the expectations of the IPUC and OPUC. As part of the public workshops on Case No. IPC-E-13-14, Idaho Power and other stakeholders agreed on a new methodology for valuing demand response. The settlement agreement, as approved in IPUC Order No and OPUC Order No , defined the annual cost of operating the three demand response programs for the maximum allowable 60 hours to be no more than $16.7 million. The annual value calculation will be updated with each IRP based on changes that include, but are not limited to, need, capital cost, or financial assumptions. This amount was reevaluated in the 2015 IRP to be $18.5 million. Under the 2017 IRP, this value is $19.8 million. This value is the levelized annual cost of a 170-MW deferred resource over a 20-year life. The demand response value calculation will include this value even in years when the IRP shows no peak-hour capacity deficits. In 2017, the cost of operating the three demand response programs was $8.8 million. Idaho Power estimates that if the three programs were dispatched for the full 60 hours, the total costs would have been approximately $11.1 million and would have remained cost-effective. Details on the cost-effectiveness assumptions and data are included in Supplement 1: Cost-Effectiveness. Page 12

21 Idaho Power Company Introduction Energy Efficiency Advisory Group Formed in 2002, EEAG provides input on enhancing existing DSM programs and on implementing energy efficiency programs. Currently, EEAG consists of 13 members from Idaho Power s service area and the Northwest. Members represent a cross-section of customers from the residential, industrial, commercial, and irrigation sectors, as well as representatives from low-income households, environmental organizations, state agencies, public utility commissions, and Idaho Power. EEAG meetings are generally open to the public and attract a diverse audience. Idaho Power appreciates the input from the group, and acknowledges the commitment of time and resources the individual members give to participate in EEAG meetings and activities. EEAG meets quarterly and, when necessary, Idaho Power facilitates conference calls and/or webinars to address special topics. In 2017, four EEAG meetings were held: February 16, May 3, August 2, and November 1. During these meetings, Idaho Power discussed new energy efficiency program ideas and new measure proposals, marketing methods, and specific measure details; provided the status of energy efficiency expenses and the Idaho and Oregon Rider funding; gave updates of ongoing programs and projects; and supplied general information on DSM issues and other important issues occurring in the region. Experts were invited to speak about evaluations, research, and other topics of interest. Idaho Power relies on input from EEAG to provide a customer and public-interest view of energy efficiency and demand response. Additionally, Idaho Power regularly presents on current and future cost-effectiveness of energy efficiency programs and the changes in IRP DSM Alternate costs, which Idaho Power uses in calculating cost-effectiveness. In each meeting, Idaho Power requests feedback from EEAG members on energy efficiency and demand response programs, specific measures, and incentives. EEAG often recommends presentation ideas for the meetings. For example, based on EEAG feedback from the August meeting, the company presented information on its program evaluations, including the purpose, types, and objectives. The company also presented the preliminary evaluation plan for Throughout 2017, Idaho Power relied on input from EEAG on the following important topics: Commercial Energy-Savings Kits Idaho Power proposed and discussed a new offering, Commercial Energy-Savings Kits for small commercial customers, and asked for recommendations on the content of the kits and the distribution methods. Members of EEAG suggested offering customizable kits, different kits for different types of businesses, including sticker or clings within the kits with energy savings tips and suggestions. EEAG offered several distribution options including in-person delivery by Idaho Power staff, mail order and postal delivery request, and through Idaho Power s customer service center. Commercial Energy-Savings Kits are still under development, and Idaho Power plans to start distributing the kits in the second quarter of The company investigated customizable kits, but found the expense of customization would result in the kits not being cost-effective. While not completely customized, the company has tailored kits to three commercial business types: restaurant, Page 13

22 Introduction Idaho Power Company retail, and office, which will also serve general small businesses. The company plans to distribute them through Idaho Power field staff, customer service center employees, and direct-mail. Heat Pump Water Heaters Idaho Power proposed offering heat pump water heaters (HPWH) in the Heating & Cooling Efficiency (H&CE) Program, and asked EEAG members for recommendations on offering the product and methods of installation, including contractor or home-owner options and training for both. Based on EEAG s feedback, Idaho Power has added an HPWH incentive for home-owner or contractor installation and optional training for both for EEAG also supported including promotional clings in the ESKs, instructing customers to place them on their existing water heater. When the customer needs to replace the old water heater, the cling is intended to remind them of the HPWH option. Idaho Power is incorporating clings in the 2018 ESKs. Thermostatic Shower Valves In 2016, Idaho Power distributed thermostatic shower valves (TSV) to EEAG members and requested feedback after they tested them. A few members installed the TSVs and offered support for including them in the ESKs and using them in Idaho Power s direct-install programs. Based on EEAG feedback, TSV combination showerheads were incorporated into the ESKs and were added to the Multifamily Energy Savings Program in Fridge and Freezer Recycling Program In 2017, when it became clear that the Fridge and Freezer Recycling Program was no longer a costeffective program to operate, the company informed EEAG of its plans to discontinue the program, and sought EEAG input on the timing and ways to communicate this information to customers. EEAG supported an end-of-year timeline so customers who wanted to participate would still have the opportunity. EEAG suggested that Idaho Power collaborate with county agencies for future offerings and analyze the program again when new alternate costs are made available. The company committed to tracking the program s cost-effectiveness when new alternate costs became available. EEAG advised Idaho Power to reach out to customers as quickly as possible to notify them of the program ending date of December 31, 2017, to encourage participation before the end date. The company updated its website in September notifying customers the program would end December 31, and used a variety of marketing tactics, including social media posts, bill inserts, and an article in Connections, the company s monthly newsletter, to communicate the program was ending. The Idaho Power website was updated January 2, 2018, to encourage customers to visit earth911.com to find recycling centers in their area. Smart-Saver Pledge 2017 The company sought input from EEAG on conducting another Smart-Saver Pledge in 2017 and suggestions for the timing of the pledge. Based on EEAG feedback, the pledge was held in October 2017 to coincide with Energy Awareness Month. The company encouraged customers to sign up for the Page 14

23 Idaho Power Company Introduction pledge via social media and asked participants how it was going and encouraged them to keep up the good work. Energy Efficiency Guide In early 2017, EEAG was consulted on the distribution of the Energy Efficiency Guide; based on suggestions from EEAG, Idaho Power targeted the first-time home buyer market with its winter issue. EEAG also suggested other types of distribution channels for this guide such as: universities, real estate offices, mortgage companies, home owners associations, and the Idaho Housing Association. The company contacted several real estate agents, but received no responses. However, the guides were distributed at the City of Boise s Atlantic Idea House, which is used to give citizens an up-close look at energy-efficient upgrades. New Customer Onboarding Based on previous EEAG suggestions regarding onboarding new customers, Idaho Power presented two energy efficiency kit options and asked for feedback regarding which would most likely encourage new customers to adopt energy-efficient behaviors. Based on the feedback from EEAG, the company decided to develop a four-lightbulb kit. Idaho Power displayed this kit at the November EEAG meeting, and has begun distributing them to new customers. Commercial and Industrial Cohorts Idaho Power has presented information to EEAG many times on its cohort offerings, and in 2017 the company requested feedback on conducting cohort activities in collaboration with Rocky Mountain Power and the Bonneville Power Administration (BPA). EEAG gave feedback that this would be worthwhile, and Idaho Power began the joint effort in January 2018 to conduct a water-supply cohort for seven cities in eastern Idaho. Irrigation Energy Efficiency Rewards Program In 2017, the company requested feedback on a dealer incentive for the Irrigation Energy Efficiency Rewards Program to increase dealer engagement. There was no consensus among EEAG members, however the company will continue to explore methods to better engage with irrigation equipment dealers and will continue discussions with EEAG. Idaho Power Field Staff Idaho Power strives to provide all customer classes with individual and unique service regarding energy efficiency education and opportunities to utilize its energy efficiency programs. The company has a wide array of field personnel who provide this service throughout the Idaho Power service area. These expert energy advisors include: major account and combo representatives, customer representatives, agriculture representatives, community education representatives, and customer solutions advisors. All the representatives are subject-matter experts in their field and provide added support for customers through strong working relationships. Page 15

24 Introduction Idaho Power Company The company has eight major account and combo representatives who provide individual service to include promotion of energy efficiency offerings to Idaho Power s large-commercial and industrial customers. The company s 16 customer representatives are assigned to the smaller commercial and residential customers. They provide expertise ranging from energy-efficient equipment upgrades to high-bill troubleshooting for residential customers. The company has six agricultural representatives who support agricultural customers and provide expertise on efficient irrigation design and promote irrigation energy efficiency programs. Lastly, the five community education representatives promote energy-efficient education within the schools in Idaho Power s service area and administer the Student Energy Efficiency Kit (SEEK) Program. In 2017, Idaho Power created a new position at the customer service center: the customer solutions advisor. These eight new employees conduct outbound calling to commercial and irrigation customers and field-specific calls about specialty areas, such as energy efficiency and Home Energy Reports (HER). Future Plans for DSM Programs Idaho Power will continue to pursue all prudent cost-effective energy efficiency as identified by third-party potential studies, and an appropriate amount of demand response based on the demand response settlement agreement approved in IPUC Order No and OPUC Order No The forecast level of energy efficiency and the needed level of demand response are included in Idaho Power s biennial IRP planning process. Idaho Power includes all achievable cost-effective energy savings as identified in its potential studies in each IRP. Idaho Power considers this achievable potential a reasonable 20-year planning estimate. However, the company does not consider the achievable potential as a ceiling limiting energy efficiency acquisition. The IRP is developed in a public process that details Idaho Power s strategy for economically maintaining the adequacy of its power system into the future. The IRP process balances reliability, cost, risk, environmental concerns, and efficiency to develop a preferred portfolio of future resources to meet the specific energy needs of Idaho Power s customers. The company will explore new energy savings potential through third-party resources, conferences, and regional organizations, and will continue to assess and develop new program offerings through its Program Planning Group (PPG). Idaho Power will work in consultation with EEAG to expand or modify its energy efficiency portfolio. Future plans for individual programs are included under each program s 2018 Program and Marketing Strategies. In 2018, Idaho Power will continue to enhance its marketing and outreach efforts as described in the Marketing section of this report and within each program section. Idaho Power will continue to work with NEEA on its market transformation activities during the 2015 to 2019 funding cycle. The company will complete its research and evaluation, measurement, and verification (EM&V) projects included in the evaluation plan in Supplement 2: Evaluation. Idaho Power will continue its efforts to become more energy efficient as it continues to upgrade the company s substation buildings across its service area. In 2018, the company will continue to replace T-12 lighting with LEDs and existing thermostats with smart thermostats. Page 16

25 Idaho Power Company Introduction DSM Annual Report Structure The consists of the main document and two supplements. Supplement 1: Cost-Effectiveness shows the standard cost-effectiveness tests for Idaho Power programs and includes a table that reports expenses by funding source and cost category. In 2017, the company continued its commitment to third-party evaluation activities. Included in Supplement 2: Evaluation are copies of Idaho Power s 2017 evaluations, customer surveys, reports, Idaho Power s evaluation plans, general energy efficiency research, and demand response research, and links to evaluations conducted by NEEA. This main is organized primarily by customer sector: residential, commercial/industrial, and irrigation. Each sector has a description, which is followed by information regarding programs in that sector. Each program description includes a table containing 2017 and 2016 program metrics, followed by a general description, 2017 activities, cost-effectiveness, customer satisfaction/evaluation, and 2018 plans. Each program section contains detailed information relating to program changes and the reasoning behind those changes, including information on costeffectiveness and evaluation. Following the sector and program sections of the report are descriptions of Idaho Power s activities in other programs and activities, including market transformation. Appendices 1 through 5 follow the written sections and contain a table on 2017 expenses and savings as well as historic information for all energy efficiency programs and demand response activities at Idaho Power. Page 17

26 2017 Program Activity Idaho Power Company DSM Expenditures 2017 PROGRAM ACTIVITY Funding for DSM programs in 2017 came from several sources. The Idaho and Oregon Rider funds are collected directly from customers on their monthly bills. From January to March 2017, the Idaho Rider was 4 percent of base rate revenues; effective April 1, 2017, pursuant to IPUC Order No , the percentage decreased to 3.75 percent. The 2017 Oregon Rider was 3 percent of base rate revenues. Additionally, Idaho demand response program incentives were paid through base rates and the annual PCA mechanism. DSM expenses not funded through the Rider are included as part of Idaho Power s ongoing operation and maintenance (O&M) costs. Total DSM expenses funded from all sources were $47.8 million in At the beginning of 2017, the Idaho Rider balance was approximately $10.7 million, and by December 31, 2017, the positive balance was $0.4 million. At the beginning of the year, the Oregon Rider negative balance was approximately $5.6 million, and by year-end, the negative balance was $6.3 million. Table 3 shows the total expenditures funded by the Idaho and Oregon riders and non-rider funding resulting in Idaho Power s total DSM expenditures of $47,757,496. The non-rider funding category includes the company s demand response Idaho incentives, Weatherization Assistance for Qualified Customers (WAQC) expenses, and O&M costs. Table funding source and energy savings Funding Source Expenses kwh Savings Idaho Rider... $ 37,086, ,493,820 Oregon Rider... 1,885,098 7,323,111 Non-Rider Funding... 8,786, ,464 Total... $ 47,757, ,471,395 Table 4 and Figure 8 indicate 2017 DSM program expenditures by category. The Materials & Equipment category includes items that directly benefit customers: ESKs and LED lightbulbs distributed at customer events ($2,835,998), and direct-install weatherization measures ($125,000). The expenses in the Other Expense category include marketing ($1,223,262), program evaluation ($136,413), program training ($508,181), and program audits ($232,693). The Purchased Services category includes payments made to NEEA and third-party contractors who help deliver Idaho Power s programs. Page 18

27 Idaho Power Company 2017 Program Activity Table DSM program expenditures by category Total % of Total Incentive Expense... $ 24,611,544 52% Labor/Administrative Expense... 3,763,725 8% Materials & Equipment... 3,300,131 7% Other Expense... 4,133,286 8% Purchased Services... 11,948,809 25% Total 2017 DSM Expenditures by Category... $ 47,757, % Figure DSM program expenditures by category Table 5 and Figure 9 describe the amount and percentage of incentives paid by segment and sector. There are two incentive segments (demand response and energy efficiency) and three sectors (residential, commercial/industrial, and irrigation). The incentives are funded by four mechanisms: the Idaho Rider, the Oregon Rider, Idaho Power base rates, and the PCA. Market transformation related payments made to NEEA and payments made to third-party community action agencies under the WAQC and Weatherization Solutions for Eligible Customers programs are not included in the incentive amounts. Table DSM program incentives totals by program type and sector Program Type Sector Total % of Total DR a Residential... $ 405,353 2% DR Commercial/Industrial ,954 2% DR Irrigation... 6,412,299 26% EE b Residential... 3,576,965 15% EE Commercial/Industrial... 11,638,379 47% EE Irrigation... 2,013,594 8% Total Incentive Expense... $ 24,611, % a DR = demand response b EE = energy efficiency Page 19

28 2017 Program Activity Idaho Power Company Figure DSM program incentives by segment and sector Marketing Idaho Power used multi-channel marketing and public relations tactics in 2017 to improve communication and increase energy efficiency program awareness among its customers. Idaho Power uses a wide variety of media and marketing. Owned media (social, website, newsletters) and paid media (advertising, sponsorships) allow Idaho Power to control content. Earned unpaid media (news coverage, Idaho Power s News Briefs sent to reporters, third-party publications, and television news appearances) give Idaho Power access to audiences through other channels and help establish credibility and brand trust. Though Idaho Power has less control of the content with earned unpaid media, the value is established from the third-party endorsement. The following describes a selection of the methods, approaches, and tactics used by Idaho Power to engage with customers regarding energy efficiency, along with their results. All Sectors Social Media Approximately 25 percent of the company s total social media content promoted energy efficiency in Idaho Power distributed more than 260 messages about energy efficiency throughout the year via Facebook, Twitter, LinkedIn, and Instagram. Idaho Power also enjoyed the benefit from many energy efficiency-related posts customers shared on their personal and business pages. Page 20

29 Idaho Power Company 2017 Program Activity Figure 10. Idaho Power customers share energy efficiency information on social media In 2017, Idaho Power continued its #TipTuesday posts on Facebook and Twitter, a tactic launched in late #TipTuesday posts provided Idaho Power s Facebook and Twitter followers with an energy efficiency tip or program information every Tuesday of the year. The posts used photos and included the hashtag #TipTuesday so the tips could be categorized together and easily searched by social media users. The company also posted information about several energy efficiency programs, sponsorships, and events on its social media pages. Idaho Power s Twitter account was used to share posts from other Twitter users including the US Department of Energy (DOE), Oregon Department of Energy (ODOE), and ENERGY STAR, among others. Idaho Power s Facebook followers increased 23 percent in 2017, from 14,298 at the end of 2016 to 17,645 at the end of After analyzing corresponding data, much of this increase can be attributed to followers gained from paid energy efficiency advertising campaigns or regular content boosts. A boost resembles a traditional post, but, for a fee, Facebook promotes it higher in users news feeds. The result of such an increase in followers is two-fold: those followers gained through paid advertising now have the additional benefit of regular communications from Idaho Power, and Idaho Power now reaches more customers with social media posts. Page 21

30 2017 Program Activity Idaho Power Company Website Idaho Power launched an updated, adaptive website in November with improved navigation for a better customer experience. The adaptive website recognizes the device accessing it and automatically responds or adapts to the dimensions of that device (e.g., a smart phone). Focus-group feedback and industry standards helped inform the redesign to best serve the nearly four million visits to the site each year. Idaho Power s new website showcases energy efficiency program information in a simpler and more visually appealing format. Idaho Power tracked the number of page views to the main energy efficiency pages also known as landing pages on the company s website. In 2017, the company s energy efficiency homepage received 29,473 page views, the residential landing page received 95,133, and the business and irrigation landing pages received 11,410. When the new site launched in November, the energy efficiency pages were renamed under the header Ways to Save. The name change was based on feedback from the empowered community and a variety of industry research. Idaho Power uses Google Analytics to analyze web activity. Google s definition of page views is the total number of pages viewed, with repeated views of a single page by one user being counted as a new view. Figure 11. Idaho Power Ways to Save website screenshot Page 22

31 Idaho Power Company 2017 Program Activity Bill Inserts A February bill insert promoting Idaho Power s empowered community, which is often surveyed on topics related to energy efficiency, was sent to 374,446 customers. In August, 369,041 customers received a bill insert highlighting the available green choices, including energy efficiency programs. Other program-specific bill inserts were also sent throughout the year. Information about those can be found in each program later in this report. Public Relations Idaho Power s public relations staff supported energy efficiency programs and activities through multiple channels: enews videos telling positive energy efficiency stories; Connections, a monthly customer newsletter distributed in approximately 410,000 monthly bills and available online; News Briefs, a weekly of interesting news items sent to all media in the company s service area; pitching and participating in news stories; energy efficiency TV segments in two major markets (KTVB in Boise and KPVI in Pocatello); news releases; and public events (such as incentive check presentations). In 2017, the April and October issues of Connections were devoted to energy efficiency. The April issue focused on ESKs specifically, how a customer s social media post about his kit went viral and generated more than 10,000 customer requests for kits. The October edition of Connections previewed the Smart-Saver Pledge which described several behavioral change examples that customers can make to participate in the pledge and save energy in their homes. The monthly energy efficiency segments on KTVB and KPVI continued to receive positive feedback. Topics included ideas for beating the summer heat, avoiding phantom load, cooking up holiday savings, taking the Smart-Saver Pledge, and how much more efficient LED lighting is compared to older technologies in an interactive segment using an energy generating bike for demonstration. At the end of the year, a third television market was added for 2018: KMVT in Twin Falls. Figure 12. Idaho Power appearances on KPVI and KTVB Media outreach efforts resulted in a variety of earned media coverage focused on energy efficiency many of the stories featured incentive checks for schools and businesses. Energy efficiency topics were pitched in News Briefs multiple times each month on average, and the company earned media coverage in multiple markets spanning print, TV, and radio. Page 23

32 2017 Program Activity Idaho Power Company Lastly, Idaho Power produced several enews video stories focused on energy efficiency topics, which were shared with employees, customers, and the media. Notable examples include major efficiency upgrades by the City of Twin Falls (for its wastewater treatment plant), a big lighting retrofit by Idaho State University (for its indoor football stadium, Holt Arena), and a weatherization project the company undertook at Hope House (a home for disadvantaged children). These videos led to earned media coverage and received around 4,000 views via the Idaho Power YouTube channel, Facebook page, and LinkedIn profile. Staff Activities NEEA and Idaho Power staff held regular meetings throughout 2017 to coordinate, collaborate, and facilitate marketing. Monthly meetings were held via conference call, and in October, an in-person meeting occurred in Boise. All marketing activities were reviewed each month for progress, results, and collaborative opportunities. To build marketing networks and to learn what works in other regions, Idaho Power staff attended the Association of Energy Services Professionals Marketing and Customer Engagement Conference in May in Salt Lake City and the E Source Utility Marketing Executive Council and E Source Forum held in September in Denver. Residential Idaho Power ran a multi-faceted advertising campaign in the spring (March and April) and fall (September and October) to raise and maintain awareness of the company s energy efficiency programs for residential customers, and to demonstrate that saving energy does not have to be challenging (Figure 13). The campaign included a refreshed fleet of imagery and utilized radio, television, newspaper advertisements (ads), digital ads, Facebook ads, News Briefs sent to the media, the Connections newsletter, and Idaho Power s website to reach a variety of demographics. In 2017, the company continued the Smart-Saver Pledge sweepstakes (initiated in 2016) to engage and encourage customers to make an energy-saving behavior change. The CHQ first floor lobby display featured the residential energy efficiency program offerings and was aimed at educating its internal audience, including employees, contract workers, and visitors. Figure 13. Example of energy efficiency awareness campaign ad Page 24

33 Idaho Power Company 2017 Program Activity The goals of the overall campaign are to raise awareness and create interest in the programs collectively rather than by individual program. The company wants to let customers know they have options when it comes to saving energy. To achieve the marketing goals, Idaho Power used a variety of methods to reach various customer demographics and focused on using all the methods in the same month to increase message frequency and customer exposure. The messaging focused on the many ways to create an energy-efficient home with Energy Savings Made Easy as a central theme, illustrating how easy energy efficiency can be with Idaho Power s help. Idaho Power s numerous marketing tactics to promote energy saving tips and the company s energy efficiency programs are included below, along with resulting data. Digital Idaho Power placed ads on weatherbug.com and the WeatherBug app in the spring and in other online venues as part of the fall campaign. The WeatherBug ads received 1,503,162 impressions (defined as the number of times an ad was displayed), 6,460 clicks, and a click-through rate (the percent of customers who clicked the ad and were directed to Idaho Power s website) of 0.43 percent. In the fall, Idaho Power s search engine marketing ads (those that appear when customers search terms related to energy efficiency) received 15,857 impressions, 3,545 clicks and a click-through rate of percent. Web users were exposed to 684,804 banner ads (image ads embedded into a website) based on their demographics, related online articles they viewed, or their use of a mobile web pages and apps. Readers clicked on the ads 967 times, resulting in a click-through rate of 0.14 percent. The company also placed ads on the Ad Messenger (a scrolling text ad on various apps consistent with the Idaho Power brand), which received 693,696 impressions, 10,031 clicks, and a click-through rate of 1.45 percent. The company also ran ads on Pandora internet radio and Hulu. Those results can be found under the Radio and Television sections, respectively. Figure 14. Example of an Idaho Power digital ad Page 25

34 2017 Program Activity Idaho Power Company Television Idaho Power used network television advertising for the spring and fall campaign. The campaign focused on primetime and news programming that reaches the highest percentage of the target market, adults age 25 to 64. Results of the advertising spots were provided for the three major markets: Boise, Pocatello, and Twin Falls. During the spring campaign, the ads reached 95 percent of customers in Idaho Power s target audience in Boise, Pocatello, and Twin Falls. The targeted audience was exposed to the ad an average of 15 times in Boise, while targeted customers in Pocatello saw the ad an average of 20 times, and Twin Falls customers saw the ad an average of 13 times. Hulu advertisements delivered 389,610 impressions. During the fall campaign, the spot reached 95 percent of customers in Idaho Power s target audience in Boise, Pocatello, and Twin Falls. Targeted customers in Boise saw the ad an average of 14 times, 16 times in Pocatello, and 13 times in Twin Falls. Radio As part of its spring and fall campaign, Idaho Power ran 30-second radio spots on major commercial radio stations, Spanish-speaking radio stations, and National Public Radio (NPR) stations in the service area. The commercial stations that ran the spots had a variety of station formats to obtain optimum reach, including classic rock, news/talk, country, adult alternative, adult contemporary, and classic hits. The message was targeted toward adults ages 25 to 64 throughout Idaho Power s service area. Results of the spots were provided for the three major markets: Boise, Pocatello, and Twin Falls. During the spring campaign, the spots reached 55 percent of the target audience in Boise, 75 percent in Pocatello and 70 percent in Twin Falls. The target audience in Boise was exposed to the ad nine times, 13 times in Pocatello, and 12 times in Twin Falls. During the fall campaign, the spots reached 60 percent of the target audience in Boise and Pocatello and 55 percent of the target audience in Twin Falls. The target audience was exposed to the message seven times in Boise, 16 times in Pocatello, and 10 times in Twin Falls during the fall campaign. In summary, Idaho Power ran 2,688 radio spots during the spring campaign and 2,688 spots during the fall campaign, totaling 5,376 radio spots in In April and October, 30-second spots ran with accompanying visual banner ads on Pandora internet radio accessed by mobile and web-based devices. In April, records show 1,416,990 impressions and 2,427 banner clicks to the Idaho Power residential energy efficiency web page. October yielded 449,736 impressions and 780 clicks. The lower ratings in October are attributed to Pandora revamping the visual ad experience to eliminate accidental clicks. The revamp resulted in the display ad filling the screen but not covering the album artwork. The listener could see the cover art, pause/play/skip songs, and the ad would remain on the screen for the length of the song. Previously the ad covered all of that info. This improvement resulted in fewer accidental clicks, and in turn, fewer impressions. Page 26

35 Idaho Power Company 2017 Program Activity Print As part of the spring and fall campaign, print advertising ran in the major daily and weekly newspapers throughout the service area. The company also ran ads in the Idaho Shakespeare Festival program and Sun Valley Magazine. The ads highlighted individual energy efficiency programs, such as getting a home energy audit or installing a ductless heat pump. The ads informed customers that Idaho Power can help customers save energy and money regardless of whether they live in a house or apartment. The ads were scheduled for 1,487,521 impressions in the spring and 1,288,212 impressions in the fall. Social Media Idaho Power s Facebook ads reached 371,873 people and received 11,190 clicks during the spring energy efficiency campaign. During the fall energy efficiency campaign, Facebook ads reached 280,921 people and resulted in 6,009 clicks. Because of a technical difficulty, which Idaho Power believes was related to running two ads at the same time, the fall campaign results yielded less reach and fewer clicks than in the spring. Throughout the year, Idaho Power used Facebook boosts for various programs. Smart-Saver Pledge Sweepstakes In 2017, Idaho Power continued with the Smart-Saver Pledge sweepstakes to encourage customers in Idaho to make an energy saving behavior change. Customers were asked to commit to making an energy-saving behavior change for 21 days, choosing from one of the following actions: clean refrigerator condenser coils, register for My Account and review energy use once a week, wash clothes in cold water, and use the crockpot or barbeque once a week instead of the stove. In return, pledge participants were entered to win an ENERGY STAR electric appliance. The pledge was primarily promoted through a bill insert (Figure 15) that went to 345,278 customers and included a sign-up form on the back that customers could mail in. Promotion and a sign-up option was also used on social media posts. Additional promotion included News Briefs, the October issue of Connections, and television news segments on KTVB and KPVI where customers were directed to sign up on the Smart-Saver web page. The sweepstakes dates were October 2 through November 17. Page 27

36 2017 Program Activity Idaho Power Company Figure 15. The 2017 the Smart-Saver Pledge bill insert Idaho Power received 926 pledges throughout the pledge period and dozens of additional pledges after the pledge ended. A new approach in 2017 was extending the entry period to mid-november (compared to the end of October in 2016) so customers receiving the bill insert at the end of the billing cycle would still have 21 days to complete the pledge items. The company received positive feedback from customers about the pledge and their energy habits. The company believes the participants were highly engaged and that the results were generally positive, providing good information for continuing the pledge in future years. One customer stated I have never seen a power company more committed to saving energy. Customers were asked to complete a follow-up survey as part of the pledge. In return, participants were entered to win one $100 cash prize. Three hundred and ninety-six customers responded to the follow-up survey. Highlights include the following: Ninety-four percent of respondents fulfilled all 21 days of their pledge. Page 28

37 Idaho Power Company 2017 Program Activity Of respondents who answered the question regarding whether they would continue their energysaving changes, all but two planned to continue with the energy saving changes after the pledge ended. Sixty-one percent of respondents indicated they were very likely to seek out additional ways to save energy. After taking the pledge, 98.7 percent of respondents were somewhat likely or very likely to participate in an Idaho Power energy efficiency program. Washing laundry in cold water was the highest-ranking item at 80 percent. A copy of the full survey results can be found in Supplement 2: Evaluation. Campaign Results The response to the spring Energy Savings Made Easy campaign was measured using Idaho Power s empowered community, an online panel of over 1,000 customers asked to share perceptions and feedback on a variety of topics each month. Following the 2017 spring campaign, surveys were sent to 667 empowered community members who had not previously participated in an energy efficiency campaign awareness study in 2015 or 2016 or who joined the community after July 1, The participation rate was 53 percent and included the following data: Forty-nine percent of respondents remember seeing or hearing one of the ads. Sixty-eight percent of respondents recalled the ads in the Connections newsletter, followed by a 36 percent recall of television ads. Eighty percent of respondents indicated they are very likely or somewhat likely to make energy-saving changes in their home after seeing the ads. Ninety-seven percent of respondents somewhat agreed or strongly agreed that Idaho Power encourages energy efficiency and saving energy with its customers. A copy of the results of the study is located in Supplement 2: Evaluation. Energy Savings Guide Survey In 2017, Idaho Power planned to develop a spiral-bound energy savings guide that provided details on the company s energy efficiency programs, tips on how to save energy, and resources to help do so. To gauge customer interest in this guide and the possibility of receiving the information in the mail, Idaho Power surveyed its empowered community. Fifty-nine percent responded as follows: Ninety-five percent of respondents were somewhat or very likely to open the guide if they received it in the mail. After reviewing a guide like the sample provided, 67 percent of respondents would be likely to investigate Idaho Power s energy efficiency program, 61 percent would be likely to participate in one or more Idaho Power energy efficiency programs, and 71 percent would be likely to make other energy savings improvements in their home. Page 29

38 2017 Program Activity Idaho Power Company Ninety-five percent of respondents felt the guide would be somewhat or very useful in helping them save energy and money. When asked about the best way to make the guide available, 61 percent said send in the mail, 57 percent wanted the information available online, and 47 percent were interested in a downloadable PDF available on idahopower.com. Eighty-four percent of respondents would be somewhat or very likely to save the guide for future use. A copy of the results of the survey is located in Supplement 2: Evaluation. Commercial and Industrial In 2017, Idaho Power marketed the C&I Energy Efficiency Program as a single entity with incentives for New Construction, Retrofits, and Custom Projects, in addition to the company s demand response program, Flex Peak. Marketing activities were targeted toward commercial, industrial, governmental, schools, and small-business customers, architects, engineers, and other design professionals. Idaho Power implemented a new ad campaign (Figure 16) for the C&I Energy Efficiency Program in 2017, featuring former program participants and iconic local landscapes to capture the readers attention. The ads targeted small to large businesses, and showed that saving energy and money is for everyone. The company also released three success story videos featuring CSHQA, ON Semiconductor, and Ash Grove Cement that provided a more in-depth look into the companies experiences working with Idaho Power and the incentives and energy savings they achieved. Figure 16. Example of Commercial and Industrial Energy Efficiency Program ad Page 30

39 Idaho Power Company 2017 Program Activity Airport Advertising Each year, 3.55 million people travel through the Boise Airport; according to airport officials, half of them are travelling for business. To reach the business customer, Idaho Power placed two backlit display ads. An ad featuring program participants was located at the baggage claim area, while an ad on alternating airport display boards highlighted that all customers want to save money. Social Media Idaho Power expanded its presence on LinkedIn in 2017 and began using the social network to promote energy efficiency to businesses. In April, the company began weekly LinkedIn posts focused on energy-saving tips, program details, incentives, and event information. These posts highlighted companies who used the program and included photos of giant check presentations and success story videos. When appropriate, these messages were also shared on Idaho Power s Facebook and Twitter pages. Newsletters Idaho Power promotes energy efficiency and its programs through the company s Energy@Work newsletter. Written for small- and medium-sized business customers, Idaho Power published this newsletter in February and October Content included customer success stories and information on training opportunities, energy efficiency tools and programs, sustainability, customer satisfaction surveys, rates, scams, the IRP, and more. Idaho Power also sent a quarterly newsletter, Energy Insights, to its large-commercial and industrial customers. Topics included customer success stories, renewable energy options, LEDs, power quality, training opportunities, variable frequency drives, chillers, and more. Public Relations Idaho Power provides public relations support to customers who want to publicize the work they have done to become more energy efficient. Upon request, Idaho Power creates large-format checks that are used for media events and/or board meetings. Idaho Power will continue to assist customers with public relations opportunities by creating certificates for display within their buildings and speaking at press events, if requested. In 2017, Idaho Power produced checks and/or sent news releases for many companies and organizations, including Ash Grove Cement in Durkee, Oregon, the City of Nampa, and Great Western Malting in Pocatello. The news releases on Ash Grove and the City of Nampa s energy efficiency efforts generated earned media in local newspapers, while Great Western Malting s large format check was for its internal use only. After the newly merged Baker & Murakami Produce Company made major energy efficiency upgrades to its expanding facilities, Idaho Power presented the onion shipping company with $32, for its new LED lighting system on July 17. Page 31

40 2017 Program Activity Idaho Power Company Figure 17. Check presentations to Ash Grove Cement and Baker & Murakami Produce Company Sponsorships Idaho Power s C&I Energy Efficiency Program supports a number of associations and events, including sponsoring the Grow Smart awards; Top Projects Awards; Building Owners and Managers Association (BOMA) symposium; American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) Technical Conference; and the Idaho Energy and Green Building Conference. Idaho Power sponsored the BOMA Commercial Real Estate Symposium February 14, in Boise. The Idaho Power CR&EE senior manager spoke about why Idaho Power encourages customers to use less energy, why saving energy makes good business sense, how Idaho Power s programs can help, and then shared a video highlighting how one company saved energy and money by using the C&I Energy Efficiency Program. Idaho Power and NEEA were also major sponsors of the Idaho Energy and Green Building Conference, and had two members on the planning committee. The conference, held October 4 and 5 at the Red Lion Hotel Boise Downtowner, provided three training tracks on Balancing Human Health and Energy, New Technologies, and Codes and Best Building Practices and attracted approximately 100 participants. Idaho Power directly participated in two of the sessions: K 12 Schools Continuous Energy Improvement (CEI) and the Water and Wastewater Energy Champion Roundtable. The conference targeted policy makers, developers, architects, code officials, engineers, energy professionals, and industrial plant managers and operators. Irrigation In 2017, the company mailed a spring and fall edition of Irrigation News to all irrigation customers in its service area. The spring edition focused on energy efficiency programs and the numerous ways customers can do business with Idaho Power (My Account, interactive voice response system, and Paperless Billing), and showcased a sample bill to help educate irrigators. The fall edition featured safety tips, a description of the Irrigation Efficiency Rewards program measures, and a section titled Meet Your Agriculture Representatives. This newsletter provides an opportunity to increase transparency and trust, and to promote the Irrigation Efficiency Rewards program. Idaho Power also placed numerous ads in print agricultural publications to reach the target market in smaller farming communities. Publications included: Capital Press, Gem State Producer, Times News, Page 32

41 Idaho Power Company 2017 Program Activity Owyhee Avalanche, Idaho Press Tribune, Power County Press, Potato Grower Magazine, Aberdeen Times, Idaho Cattle Association Guide, and Argus Observer. Idaho Power utilized radio advertising to promote its presence at the Agri-Action show and used Facebook posts to promote visiting Idaho Power representatives at the Idaho Irrigation Equipment Association Conference. The company also ran radio ads in Idaho s Magic Valley to show support of Future Farmers of America and Ag Week conferences. In spring 2017, the company had a unique opportunity to run joint television advertising with the Twin Falls County Pest Abatement District. The ad promoted irrigation equipment efficiency while educating the public on mosquito abatement preventing large pools of water where mosquitoes breed. The ads ran May 29 through June 18 on KMVT and were well received. Digital advertising was used to drive traffic to the online version of the ad, and the total click-through rate was 1.13 percent well above the industry average of 0.08 percent Marketing Activities In 2018, the Idaho Power marketing department plans to introduce new tactics to expand the reach and visibility of the company s energy efficiency ads. The marketing team will run the Residential Energy Efficiency Awareness Campaign updated in 2017 on new marketing channels, including Google AdWords, outdoor activity venues, and Idaho Public Television. New print publications will also be considered. The team will continue exploring a consistent look and feel for all residential program materials, and consider the potential for marketing. Idaho Power will continue to support various commercial and industrial organizations and programs focused on promoting energy efficiency, and plans to reach out to small-business organizations and industry-specific associations with materials about how businesses can save energy and the incentives Idaho Power provides. Additionally, the company will consider updating the marketing collateral and the look and feel of the advertising for the irrigation programs. Cost-Effectiveness Results In 2017, 37 individual measures in various program are shown to be not cost-effective from either the UC or TRC perspective. These measures will be discontinued, analyzed for additional non energy benefits (NEB), modified to increase potential per-unit savings, or monitored to examine their impact on the specific program s overall cost-effectiveness. Most of Idaho Power s energy efficiency programs were cost-effective from the perspective of all tests, except for the Fridge and Freezer Recycling Program, H&CE Program, Home Improvement Program, and the weatherization programs for income-qualified customers. Fridge and Freezer Recycling Program The Fridge and Freezer Recycling Program has a UC of 0.60 and a TRC of The program s costeffectiveness has been an ongoing discussion with EEAG since 2014 due to declining deemed savings values from the RTF and Idaho Power s DSM Alternate costs. After reviewing the program s Page 33

42 2017 Program Activity Idaho Power Company participation history and trends, Idaho Power determined the program was unlikely to be cost-effective under either the UC or TRC test. Other regional utilities, such as Avista, Rocky Mountain Power, and Energy Trust of Oregon, had recently discontinued their recycling programs, and Seattle City Light was in the process of suspending its program. Idaho Power presented these findings at the August 2, 2017, EEAG meeting, and those members in attendance supported the recommendation to end the program. The program s higher than anticipated UC and TRC for 2017 was largely due to the large push to increase the program s participation before its discontinuation, as well as a reduction to the program s administrative costs. Due to updated savings from the RTF, the program is still anticipated to be not cost-effective in future years. Heating & Cooling Efficiency Program The H&CE Program has a UC of 1.48, TRC of 0.85, and PCT of In 2016, Idaho Power reviewed the program s cost-effectiveness and notified EEAG at the August 30, 2016, meeting that the program was anticipated to be not cost-effective from the TRC perspective. Throughout 2017, Idaho Power discussed with EEAG proposed tactics it could implement to improve the program s overall costeffectiveness. These tactics included re-assigning non-program labor, reducing marketing spent while improving other tactics, and removing the stipend to participating contractors. Effective January 1, 2018, the contractor stipend is reduced from $150 to $50, and a HPWH is added to the measure offerings. The inclusion of the HPWH measure may increase the potential energy savings in the program without significantly increasing administrative costs, which may improve the program s overall cost-effectiveness. The company plans to monitor this program and seek opportunities to improve the program s overall cost-effectiveness. Home Improvement Program The Home Improvement Program had a UC of 2.54, a TRC of 0.41, and a PCT of 0.70 in 2017, which was the second consecutive year it was not cost-effective from the TRC or the PCT perspectives. Due to the reduced weatherization savings from the RTF, as well as the DSM Alternate costs from the 2015 IRP, the cost-effectiveness of the program from the TRC and PCT perspectives has continued to decline. Idaho Power analyzed ways to modify the program to improve the cost-effectiveness, but despite the long 45-year life of the program and measures, the company concluded the program would remain not cost-effective and ended it in June Weatherization Programs The WAQC program had a TRC of 0.48 and a UC ratio of 0.37, and the Weatherization Solutions for Eligible Customers program had a TRC of 0.46 and a UC ratio of The programs showed a decrease in savings and cost-effectiveness ratios over The decrease to overall cost-effectiveness is due in part of the lower DSM Alternate costs from the 2015 IRP as well as the updated load shapes that reflect that most of the savings for the programs occur in the non-summer months. Page 34

43 Idaho Power Company 2017 Program Activity Table 6. Cost-effectiveness summary by energy efficiency program Program/Sector UC TRC Ratepayer Impact Measure (RIM) Educational Distributions n/a Energy Efficient Lighting Energy House Calls n/a Fridge and Freezer Recycling Program n/a Heating & Cooling Efficiency Program Home Improvement Program Multifamily Energy Savings Program n/a Rebate Advantage Residential New Construction Pilot Program (ENERGY STAR Homes Northwest) Simple Steps, Smart Savings Weatherization Assistance for Qualified Customers n/a Weatherization Solutions for Eligible Customers n/a Residential Energy Efficiency Sector Commercial and Industrial Energy Efficiency Program Custom Projects New Construction Retrofits Commercial/Industrial Energy Efficiency Sector * Irrigation Efficiency Rewards Irrigation Energy Efficiency Sector ** Energy Efficiency Portfolio * Commercial/Industrial Energy Efficiency Sector cost-effectiveness ratios include savings and participant costs from Green Motors Rewinds. ** Irrigation Energy Efficiency Sector cost-effectiveness ratios include savings and participant costs from Green Motors Rewinds. Details on the cost-effectiveness assumptions and data are included in Supplement 1: Cost-Effectiveness. Customer Satisfaction Based on surveys conducted in the last six months of 2016 and the first six months of 2017, Idaho Power ranked second out of 14 utilities included in the west region midsize segment of the J.D. Power and Associates 2017 Electric Utility Residential Customer Satisfaction Study. Forty-nine percent of the residential respondents in this study indicated they were aware of Idaho Power s energy efficiency programs, and those customers were on an overall basis more satisfied with Idaho Power than customers who are unaware of the programs. Idaho Power employs Burke, Inc., an independent, third-party research vendor, to conduct quarterly customer relationship surveys to measure the overall customer relationship and satisfaction with Idaho Power. The Burke Customer Relationship Survey measures the satisfaction of a number of aspects of the customer s relationship with Idaho Power, including energy efficiency at a very high level. However, it is not the intent of this survey to measure all aspects of energy efficiency programs offered by Idaho Power. The 2017 results of Idaho Power s customer relationship survey showed a slight decrease in overall satisfaction from the previous year. Sixty-four percent of customers indicated their needs were met or PCT Page 35

44 2017 Program Activity Idaho Power Company exceeded by Idaho Power encouraging energy efficiency among its customers. Figure 18 depicts the annual change in the percent of customers who indicated Idaho Power met or exceeded their needs concerning the energy efficiency efforts it encouraged. Figure 18. Customers needs met or exceeded (percent), Three questions related to energy efficiency programs in the general relationship survey continued in the 2017 survey: 1) Have you participated in any of Idaho Power s energy efficiency programs? 2) Which energy efficiency program did you participate in? and 3) Overall, how satisfied are you with the energy efficiency program? In 2017, 44 percent of the survey respondents across all sectors indicated they participated in at least one Idaho Power energy efficiency program, and 90 percent were very or somewhat satisfied with the program they participated in. In 2015, Idaho Power created the empowered community, an online community of residential customers, to measure customer perceptions on a variety of company-related topics, including energy efficiency. Recruiting for the community is conducted annually, primarily through billing inserts and mailed postcards. The community has just under 1,400 active members. The empowered community includes customers from across Idaho Power s service area. Idaho Power sends out at least one survey per month to active members. Energy efficiency-related survey topics in 2017 included an opinion survey on Idaho Power offering an Energy Savings Guide and recall of the spring energy efficiency marketing campaign. The average response rate for surveys conducted with the online community is just under 60 percent. Idaho Power does not separately survey most energy efficiency program participants annually. This is due primarily to a concern of over-surveying program participants and because the measures and specifics of most program designs do not change annually. To ensure meaningful research in the future, Page 36

45 Idaho Power Company 2017 Program Activity Idaho Power conducts program research periodically (every two to three years), unless there have been major program changes. Throughout 2017, Idaho Power administered several surveys regarding energy efficiency programs to measure customer satisfaction. Some surveys were administered by a third-party contractor; other surveys were administered by Idaho Power either through traditional paper or electronic surveys or through the company s empowered community online survey. Results of these studies are included in Supplement 2: Evaluation. Evaluations In 2017, Idaho Power contracted with KEMA (DNV GL) to conduct two program impact evaluations and four program process evaluations. Impact evaluations were performed for Home Energy Audit and the H&CE Program. Process evaluations were performed for the Retrofit option and the New Construction option of the C&I Energy Efficiency Program and the H&CE Program. Idaho Power conducted internal analysis of the 2017 demand response events related to A/C Cool Credit, Irrigation Efficiency Rewards, and the Flex Peak Program. An evaluation schedule and the final reports from all evaluations, research, and surveys completed in 2017 are provided in Supplement 2: Evaluation. Page 37

46 Residential Sector Overview Idaho Power Company Residential Sector Overview Idaho Power s residential sector consists of over 453,600 customers. In 2017, the residential sector s number of customers increased by 9,174, an increase of 2.1 percent from The residential sector represented 37 percent of Idaho Power s actual total electricity usage and 46 percent of overall revenue in Table 7 shows a summary of 2017 participants, costs, and savings from the residential energy efficiency programs. Table residential program summary Total Cost Savings Peak Demand (MW) Program Participants Utility Resource Annual Energy (kwh) Demand Response A/C Cool Credit... 28,214 homes $ 936,272 $ 936,272 n/a 29 Total... $ 936,272 $ 936,272 n/a 29 Energy Efficiency Easy Savings... 2,470 kits $ 149,813 $ 149, ,049 Educational Distributions... 84,399 kits/lightbulbs 3,466,027 3,466,027 21,187,261 Energy Efficient Lighting... 1,766,758 lightbulbs 4,872,888 11,078,990 37,765,190 Energy House Calls homes 183, , ,819 Fridge and Freezer Recycling Program... 2,031 refrigerators/freezers 265, , ,513 Heating & Cooling Efficiency Program projects 597,198 1,433,357 1,138,744 Home Energy Audit homes 282, , ,010 Home Improvement Program homes 166,830 1,345, ,824 Multifamily Energy Savings Program projects 168, , ,542 Oregon Residential Weatherization... 7 homes 2,384 3,755 2,154 Rebate Advantage homes 104, , , homes 323, , ,292 Residential New Construction Pilot Program (ENERGY STAR Homes Northwest)... Simple Steps, Smart Savings... 12,556 appliances/ showerheads 191, , ,171 Weatherization Assistance for Qualified Customers homes/non-profits 1,307,485 1,782, ,538 Weatherization Solutions for Eligible Customers homes 1,108,862 1,121, ,733 Total... $13,191,626 $22,668,185 65,506,319 Notes: See Appendix 3 for notes on methodology and column definitions. Totals may not add up due to rounding. In 2017, the company expanded the Multifamily Energy Savings Program, developed the New Customer Welcome Energy Efficiency Kits, and phased out the Fridge and Freezer Recycling Program. Idaho Power added measures to Multifamily Energy Savings Program, WAQC, and Weatherization Solutions for Eligible Customers. Idaho Power conducts the Burke Customer Relationship Survey each year. In 2017, 56 percent of residential survey respondents indicated Idaho Power is meeting or exceeding their needs with information on how to use energy wisely and efficiently. Page 38

47 Idaho Power Company Residential Sector Overview Sixty-one percent of residential respondents indicated Idaho Power is meeting or exceeding their needs by encouraging energy efficiency with its customers. Forty-nine percent of Idaho Power residential customers surveyed in 2017 indicated the company is meeting or exceeding their needs in offering energy efficiency programs, and 42 percent of the residential survey respondents indicated they have participated in at least one Idaho Power energy efficiency program. Of the residential survey respondents who have participated in at least one Idaho Power energy efficiency program, 88 percent are very or somewhat satisfied with the program. Forty-nine percent of the Idaho Power residential customers included in the 2017 J.D. Power and Associates Electric Utility Residential Customer Satisfaction Study indicated they are familiar with Idaho Power s energy efficiency programs. In 2017, the empowered community was surveyed regarding customer recall of the energy efficiency marketing campaign and opinions related to Idaho Power offering an Energy Savings Guide. Results of these studies are included in Supplement 2: Evaluation. During 2017, presentations to community groups and businesses continued to be an important method of communicating with Idaho Power customers. The company s customer representatives and community education representatives made hundreds of presentations in communities in Idaho Power s service area. Page 39

48 Residential Sector A/C Cool Credit Idaho Power Company A/C Cool Credit Participation and Savings Participants (participants) 28,214 28,315 Energy Savings (kwh) n/a n/a Demand Reduction (MW) Program Costs by Funding Source Idaho Energy Efficiency Rider $495,142 $632,079 Oregon Energy Efficiency Rider $39,493 $41,833 Idaho Power Funds $401,637 $429,383 Total Program Costs All Sources $936,272 $1,103,295 Program Levelized Costs Utility Levelized Cost ($/kwh) n/a n/a Total Resource Levelized Cost ($/kwh) n/a n/a Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a n/a Total Resource Benefit/Cost Ratio n/a n/a Description Originating in 2003, A/C Cool Credit is a voluntary, dispatchable demand response program for residential customers in Idaho and Oregon. Using communication hardware and software, Idaho Power cycles participants central air conditioning (A/C) units or heat pumps off and on via a direct load control device installed on the A/C unit. This program enables Idaho Power to reduce system capacity needs during times when summer peak load is high. Customers A/C units are controlled using switches that communicate by powerline carrier (PLC). The switch is installed on each customer s A/C unit and allows Idaho Power to control the unit during a cycling event. The cycling rate is the percentage of an hour that the A/C unit will be turned off by the switch. For instance, with a 55 percent cycling rate, the switch should be off for about 33 (nonconsecutive) minutes of each hour. Idaho Power tracks the communication levels to validate whether the signal reaches the switches. There are many reasons why Idaho Power s powerline carrier (PLC) cannot communicate with switch. The switch may be disconnected, an A/C unit may not be powered on, the switch may be defective, the participant s household wiring may prevent communication, and sometimes it is difficult for the company to detect why the switch is not communicating. The cycling season is June 15 through August 15, with a minimum of three cycling events and a maximum of 60 hours per season. The maximum length of a cycling event is four hours. The program is not available on weekends or holidays. The incentive is $15 per season, paid as a $5 bill credit on the July, August, and September bills. Page 40

49 Idaho Power Company Residential Sector A/C Cool Credit Program Activities In 2017, almost 27,000 customers participated in the program. Three cycling events occurred, and all were successfully deployed. The first event was Monday, June 26 from 4 p.m. to 7 p.m. The communication level was percent; the cycling rate was 55 percent. The Boise area temperature was 95 degrees at the start of the event (a storm rolled through during the event), and the Pocatello/Twin Falls area temperature was 96 degrees. The achieved reduction of MW (28.92 MW at generation) was 1.01 kw per participant in Boise and 0.83 kw per participant in Pocatello/Twin Falls, with an overall load reduction of 0.97 kw per participant. The second event was Friday, July 14 from 4 p.m. to 7 p.m. The communication level was percent; the cycling rate was 55 percent. The Boise area temperature was 100 degrees, and the Pocatello/Twin Falls area temperature was 94 degrees. The achieved reduction of MW (23.66 MW at generation) was at the sub-region level 0.85 kw per participant in Boise and 0.54 kw per participant in Pocatello/Twin Falls, with an overall load reduction of 0.80 kw per participant. The third event was Wednesday, August 2 from 5 p.m. to 8 p.m. The communication level was percent; the cycling rate was 55 percent. The Boise area temperature was 100 degrees, and the Pocatello/Twin Falls area temperature was 95 degrees. The achieved reduction of MW (23.10 MW at generation) corresponded to 0.79 kw per participant in Boise and 0.60 kw per participant in Pocatello/Twin Falls. Marketing Activities Per the settlement agreement reached in Idaho Case No. IPC-E and Oregon Case No. UM 1653, Idaho Power did not actively market the A/C Cool Credit program in 2017; however, Idaho Power did actively communicate with participants about the program in an effort to maintain participant retention. Before the cycling season began, Idaho Power sent current participants a postcard reminding them of the program specifics. Idaho Power also attempted to recruit customers who had moved into a home that already had a load control device installed and previous participants who changed residences to a location that may or may not have a load control device installed. The company used postcards, phone calls, direct-mail letters, and home visits (leaving door hangers for those not home) to recruit these customers. At the end of the summer, a thank-you postcard was sent to program participants. Cost-Effectiveness Idaho Power determines cost-effectiveness for its demand response program under the terms of IPUC Order No and OPUC Order No Under the terms of the orders and the settlement, all of Idaho Power s demand response programs were cost-effective for The A/C Cool Credit program was dispatched for nine event hours and achieved a maximum demand reduction of MW. The total expense for 2017 was $936,272 and would have remained the same if the program was fully used for 60 hours because there is no variable incentive paid for events beyond the three required events. A complete description of Idaho Power cost-effectiveness of its demand response programs is included in Supplement 1: Cost-effectiveness. Page 41

50 Residential Sector A/C Cool Credit Idaho Power Company Customer Satisfaction and Evaluations Idaho Power conducted no customer satisfaction surveys or evaluations for this program in Demand reduction estimates for 2017 events were calculated using advanced metering infrastructure (AMI) data and programming models provided to Idaho Power by CLEAResult Consulting, Inc. (CLEAResult) Program and Marketing Strategies Idaho Power anticipates no program changes in Per the terms of the above-mentioned settlement agreements, Idaho Power will not actively market the A/C Cool Credit program to solicit new participants but will accept them upon request, regardless of whether they previously participated. Attempts will continue to be made to recruit previous participants who have moved, as well as new customers moving into homes that already have a load control device installed. Page 42

51 Idaho Power Company Residential Sector Easy Savings Easy Savings Participation and Savings Participants (kits) 2,470 2,001 Energy Savings (kwh) 280, ,961 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $0 $0 Oregon Energy Efficiency Rider $0 $0 Idaho Power Funds $149,813 $127,587 Total Program Costs All Sources $149,813 $127,587 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.064 $0.035 Total Resource Levelized Cost ($/kwh) $0.064 $0.035 Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a 1.69 Total Resource Benefit/Cost Ratio n/a 2.04 Description The desired outcomes of the Easy Savings program are to educate limited-income customers about saving energy in their homes by using energy wisely, to allow hands-on experience while installing lowcost measures, and to reduce the energy burden for energy assistance/low Income Home Energy Assistance Program (LIHEAP) recipients. As a result of IPUC Case No. IPC-E and Order Nos and 30754, Idaho Power committed to fund energy efficiency education for low-income customers and provide $125,000 to Community Action Partnership (CAP) agencies in the Idaho Power service area on a prorated basis. These orders specified that Idaho Power provide educational information to customers who heat their homes with electricity provided by Idaho Power in Idaho. Initiated in 2009, the Easy Savings program straddles two calendar years. The LIHEAP program cycle starts annually in November at CAP agencies and follows the federal fiscal calendar, while Idaho Power summarizes activities annually based on a January to December cycle. However, the following report summarizes activities from November 2016 through October 2017 and covers future plans for the 2017 to 2018 program. Program Activities For the 2016 to 2017 program year, the Easy Savings planning committee agreed to provide energysaving kits to income qualified customers who heat with electricity. The planning group voted to include the following: Five LED lightbulbs An indoor clothesline Page 43

52 Residential Sector Easy Savings Idaho Power Company An Easy Savings quick-start guide A customer survey with postage-paid envelope and instructions of how to complete the survey An energy efficiency guide Idaho Power provided checks totaling $125,000 in October 2016 to the five Idaho regional CAP agencies. Each agency signed a Memorandum of Understanding (MOU), agreeing to use 30 percent of the allotment to cover expenses for administering the program at their agency. The 30 percent includes the provision for an agency energy educator to inform kit recipients about energy efficiency. CAP agencies ordered 2,470 kits in October 2016, which were distributed to customers throughout the 2016 to 2017 LIHEAP energy assistance season. Marketing Activities The Easy Savings program is included under Savings For Your Home on the Idaho Power website in the Income-Qualified Customers Programs section. Cost-Effectiveness While the program has been in existence since 2009 and has provided customers with energy-savings items, Idaho Power did not begin calculating the cost-effectiveness ratios for the program until 2015 when the company began claiming savings for the program. However, since the purpose of Easy Savings is primarily an educational and marketing program, the company determined that like the Home Energy Audit program, the traditional cost-effectiveness tests should not apply. For the five LED lightbulbs included in the kit, Idaho Power uses the RTF LED giveaway deemed savings value of 9 kwh per bulb. The savings are discounted to reflect the potential that all of the kit items may not be installed. For the single-line close line, Idaho Power used the assumption from the clothes drying racks and discounted the annual savings to be 68 kwh. Customer Satisfaction and Evaluations By the end of the program year, all of the kits had been distributed to qualifying customers, and Idaho Power received 182 customer surveys. Results were as follows: 122 respondents installed all five LED lightbulbs; 59 installed four or fewer lightbulbs 70 respondents installed LED lightbulbs in the family room, kitchen, and living room 62 respondents use the clothesline; 89 respondents plan to use it 73 respondents unplugged two appliances and 57 unplugged one appliance 147 respondents lowered or planned to lower their thermostat in the winter and raise it in the summer 102 respondents reported they use cold water when they do laundry Overall, 153 respondents rated their experience with the kit as very satisfied A copy of the complete survey is in Supplement 2: Evaluations. Page 44

53 Idaho Power Company Residential Sector Easy Savings Program and Marketing Strategies For the program year, the planning committee agreed that because all Idaho Power customers now can easily receive a free Energy-Savings Kit (ESK) from Idaho Power, the Easy Savings kit distributions would be discontinued. Instead, the Low Income Education program planning committee developed a new pilot to provide a free electric furnace-a/c unit or heat pump unit tune-up coupon to income-qualified customers who receive energy assistance on their Idaho Power bill. The pilot was launched November 1, The coupons, distributed to customers by CAP agencies, provide heating, ventilation, and air conditioning (HVAC) contractor contact information for the customer to schedule an appointment for their no-cost tune-up. At the time of the visit, the contractor provides education about electric heating systems while tuning the equipment, leaving plenty of time for questions. Energy efficiency information and a satisfaction survey is left with the customer after the tune-up has been completed. The contractor collects the signed coupon and invoices their regional CAP Agency for reimbursement. Community Action Partnership Association of Idaho, Inc. (CAPAI) agreed to provide two $100 gift cards to use as prizes for a drawing of all customer surveys returned for the pilot. In November, checks totaling $125,000 were sent to five Idaho CAP agencies with guidelines that allowed for 20 percent of the funds allotted to their region to be used to fund their administrative costs and 80 percent of their funds to be used to reimburse HVAC contractors for tune-ups completed for the pilot. Administration costs for the coupons are less than the 30 percent allotted to the kit distribution efforts in 2017/2018 because they require fewer resources to administer. Page 45

54 Residential Sector Educational Distributions Idaho Power Company Educational Distributions Participation and Savings Participants (kits/lightbulbs) 84,399 67,065 Energy Savings (kwh) 21,187,261 15,149,605 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $3,323,024 $2,334,206 Oregon Energy Efficiency Rider $141,860 $56,164 Idaho Power Funds $1,143 $2,514 Total Program Costs All Sources $3,466,027 $2,392,884 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.016 $0.016 Total Resource Levelized Cost ($/kwh) $0.016 $0.016 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description Designated as a specific program in 2015, the Educational Distributions effort is administered through the Residential Energy Efficiency Education Initiative and seeks to use low-cost and no-cost channels to deliver energy efficiency items with energy savings directly to customers. As with the initiative, the goal for these distributions is to drive behavior change and create awareness of and demand for energy efficiency programs in Idaho Power s service area. Idaho Power selects items for distribution if the initial analysis indicates the measure is either currently cost-effective or expected to be cost-effective. Typically, selected items have additional benefits beyond traditional energy savings, such as educating customers about energy efficiency, expediting the opportunity for customers to experience newer technology, or allowing Idaho Power to gather data or validate potential energy savings resulting from behavior change. Idaho Power recognizes that behavioral measures and programs require appropriate education and guidance to optimize savings, and will plan education accordingly. Items may be distributed at events and presentations, through direct-mail, or during home visits conducted by customer representatives. Drying Rack Pilot Project In 2016, Idaho Power distributed drying racks to determine whether customers can comfortably shift about 25 percent of their clothes drying from an automatic dryer. Idaho Power is reviewing whether to continue this project. Energy-Saving Kits Idaho Power knows that managing household energy use can be a challenge. To help make it easier for families, Idaho Power works with a kit vendor to offer two versions of its free ESK: one for homes with electric water heaters and one for homes with alternate-source water heaters. Customers enroll at Page 46

55 Idaho Power Company Residential Sector Educational Distributions idahopower.com/save2day, by calling , or by returning a postcard. A kit is sent directly to the customer s home. Each ESK contains nine LED lightbulbs (six 800-lumen lightbulbs and three 480-lumen lightbulbs), a digital thermometer (to check refrigerator, freezer, and water temperatures), a shower timer, a water flow-rate test bag, an LED night light, and educational materials. In addition, the kit for homes with electric water heaters contains a high-efficiency showerhead and three faucet aerators. Figure 19. Photo of residential ESK Energy-Saving Kits as Giveaways Idaho Power offers non-electric ESKs as giveaways, in limited quantities, at presentations and small events to garner additional interest in energy efficiency and to encourage immediate action and behavior change. Home Energy Report Pilot Program In 2017, Idaho Power contracted with a third-party contractor, Aclara Technologies LLC (Aclara), to initiate a Home Energy Report (HER) Pilot Program. The objective of the pilot is to encourage customer engagement with electricity use in order to produce average annual behavioral savings of 1 to 3 percent. Secondary objectives are to maintain or increase customer satisfaction and obtain information to inform decisions around scalability, projected savings, best target audiences, and other possible program activities in the future. The pilot project was designed based on standard randomized control trial (RCT) methodology with treatment and control groups sized appropriately to detect statistically significant savings at or above 1.2 percent, and allowing for approximately 10 percent attrition over the pilot period. Customers identified to receive customized HERs are divided into two distinct groups: the HER year-round group and the HER winter-heating group. Page 47

56 Residential Sector Educational Distributions Idaho Power Company The periodic reports provide customers with information about how their home s energy use compares with similar homes. The HER also gives a breakdown of household energy use and offers suggestions to help customers change their energy-related behaviors. Aclara statistically estimates energy savings that result from customers receiving the report by comparing the energy use of the report recipients against the energy use of a similar control group. LED Lightbulbs as Giveaways Giving away LED lightbulbs is an effective way to connect Idaho Power with its customers and to begin productive conversations around energy efficiency. Idaho Power field staff and energy efficiency program managers seek opportunities to educate customers about LEDs, and to offer customers a free lightbulb to use immediately in their own homes. Student Energy Efficiency Kit Program The SEEK program provides fourth- to sixth-grade students in schools in Idaho Power s service area with quality, age-appropriate instruction regarding the wise use of electricity. Each child who participates receives an energy efficiency kit. The products in the kit are selected specifically to encourage energy savings at home and engage families in activities that support and reinforce the concepts taught at school. Once a class enrolls in the program, teachers receive curriculum and supporting materials. Students receive classroom study materials, a workbook, and a take-home kit containing the following: Three LED lightbulbs A high-efficiency showerhead An LED nightlight A furnace filter alarm A digital thermometer for measuring water and refrigerator/freezer temperatures A water flow-rate test bag A shower timer At the conclusion of the program, students and teachers return feedback to Idaho Power s vendor indicating how the program was received and which measures were installed. The vendor uses this feedback to provide a comprehensive program summary report showing program results and savings. Unlike most residential programs offered by Idaho Power, SEEK results are reported on a school-year basis, not by calendar year. Program Activities Drying Rack Pilot Project Idaho Power suspended this project in 2017 pending review of data collected during the 2016 pilot. Energy-Saving Kits In 2017, 50,739 kits were shipped to customer homes: 27,458 kits to homes with electric water heaters and 23,281 to homes with alternate-source water heaters. In August, the high-efficiency showerheads in the electric kits were replaced by an integrated high-efficiency showerhead with a TSV. TSVs reduce Page 48

57 Idaho Power Company Residential Sector Educational Distributions the behavioral waste caused by letting the water run unchecked while it warms up. With a TSV, water flow is automatically reduced to a trickle when the water reaches 95 F, sending a signal that the water is ready. Once in the shower, the customer simply pulls a toggle string to resume normal water flow. Kits were distributed to all geographic regions within Idaho Power s service area: 48,644 to Idaho residences and 2,095 to Oregon homes. Energy-Saving Kits as Giveaways Field staff across Idaho Power s five regions distributed 2,400 giveaway kits at presentations, small events, and customer visits. The kits were particularly popular and appreciated by senior homeowners who had the opportunity to receive them at events sponsored by senior centers. Home Energy Report Pilot Program Idaho Power contracted with Aclara to introduce the HER Pilot Program to more than 26,000 customers. The HER year-round group (approximately 19,100 customers) received an introductory letter along with their first reports in late July. In August, they received the first of six bi-monthly reports. The winterheating group (approximately 7,100 customers) received reports in November, December, January, and February. The primary difference between reports was the tips and advice for the winter-heating group focused on heating suggestions, whereas tips and suggestions for the year-round group contained a wide-range of topics including air-conditioning. Savings will not be estimated and claimed until 2018, after an entire year of participation. LED Lightbulbs as Giveaways Field staff distributed over 9,000 LED lightbulbs at Spring Home and Garden Shows in Pocatello, Twin Falls, and Boise, and at the Idaho Remodeling and Design Show at the Boise Centre. Participants in Earth Day events and employee sustainability and safety fairs in Caldwell, Nampa, and Pocatello received lightbulbs, too. In Boise, the Morris Hill Neighborhood Association and several schools and scout organizations received lightbulbs in conjunction with energy efficiency presentations. Oregon customers received lightbulbs at a St. Alphonsus Safety Fair and at an agriculture workshop in Vale. These lightbulbs were also distributed at the Smart Women, Smart Money Conference; The Incredible Age Expo; a Bown Crossing Library event; the Horseshoe Bend Electric Vehicle event; the FitOne Expo; Idaho Power Shade Tree Project events; and at presentations for chambers of commerce and senior centers. By the end of the year, Idaho Power employees had personally delivered a brief energy efficiency message and distributed 22,469 lightbulbs directly to customers. Student Energy Efficiency Kit Program During the 2016 to 2017 school year, Idaho Power community education representatives actively recruited fourth- to sixth-grade teachers to participate in SEEK. As a result, Resource Action Programs (RAP) delivered 8,910 kits to 308 classrooms in 112 schools within Idaho Power s service area. This resulted in 2,019 MWh of savings. Marketing Activities Energy-Saving Kits Marketing efforts included four direct-mail campaigns from the kit vendor: one to about 18,000 customers in May, a second to about 30,000 customers in July, a third to 49,000 in September, and a Page 49

58 Residential Sector Educational Distributions Idaho Power Company fourth in late November to about 21,000 non-respondents from the earlier direct-mailings. Direct-mail efforts have consistently yielded enrollments of approximately 20 percent. The kits were featured as the cover article in the April edition of Connections. A kit was showcased at trade shows throughout the year in the service area, and a bookmark was created in both English and Spanish to serve as a giveaway highlighting instructions on how to order the kit. Numerous social media posts were used to bolster program awareness. The posts were shared by customers, helping to further promote activity. Figure 20. Bookmark in English and Spanish to help promote the ESKs The kit was showcased on the back page of the winter Energy Efficiency Guide inserted into approximately 177,000 newspapers in the service area. The kit was also featured on the green choices bill insert mailed to 369,041 customers in August. Page 50

59 Idaho Power Company Residential Sector Educational Distributions Figure 21. Social media post from realtor about ESKs The kit was prominently mentioned in the Energy Efficiency TV and radio commercials that aired during October/November, and March/April. Idaho Power also promoted the kits in the Home Energy Reports sent out in February. Energy-Saving Kits as Giveaways Idaho Power field staff educated customers about energy efficiency and encouraged them to begin making changes right away by offering a free ESK with educational items and LED lightbulbs to get them started and on their way to saving energy. Home Energy Report Pilot Program To maintain the integrity of the program design, the HER Pilot Program was not marketed directly to customers. The periodic reports were, however, used to cross-market Idaho Power s other energy efficiency programs. LED Lightbulbs as Giveaways In 2017, Idaho Power field staff and energy efficiency program managers continued to seek opportunities to educate customers about LEDs, and offer customers a free LED lightbulb to use immediately in their own homes. The Idaho Power-branded LED package sleeve was redesigned to better align with the look and feel of current energy efficiency collateral. Student Energy Efficiency Kit Program During the 2016 to 2017 school year, Idaho Power community education representatives actively recruited fourth- to sixth-grade teachers to participate in SEEK. At the onset of the school year, Idaho Power community education representatives began using s in conjunction with flyers to recruit new participants. The kits were also mentioned in organic social media posts. Figure 22 shows a post on Instagram from an Idaho teacher. Page 51

60 Residential Sector Educational Distributions Idaho Power Company Figure 22. Instagram post about the Student Energy Efficiency Kit Program Cost-Effectiveness In situations where Idaho Power managed the education and distribution through existing distribution channels, the cost-effectiveness calculations were based on the actual cost of the items. Conversely, if outside vendors were used to assist with distribution, the cost-effectiveness calculations included all vendor-related charges. Drying Rack Pilot Project Idaho Power did not claim any savings for the drying rack project in See the Customer Satisfaction and Evaluation section below for more information regarding the results of the 2016 pilot. Energy-Saving Kits The RTF provides mail-by-request deemed savings for LED lightbulbs, 1.75 gallons per minute (gpm) low-flow showerheads, and the integrated high-efficiency showerheads with a TSV. The RTF mail-byrequest deemed savings values are discounted to reflect the potential that all of the kit items may not be installed. The LED lightbulbs have a deemed savings value of 10 kwh per year. The 1.75 gpm low-flow showerhead is estimated to save 179 kwh per year. The integrated 1.75 gpm low-flow showerhead with TSV saves approximately 240 kwh annually. For the faucet aerator, the RTF does not provide a deemed savings estimate. In Idaho Power s 2014 Energy Efficiency Potential Study AEG estimates the annual faucet aerator savings to be 106 kwh. The annual savings for an ESK for a home with an electric water heater varied depending on the type of showerhead included in the kit. For kits with a 1.75 low-flow showerhead, the annual savings is 587 kwh. For kits with an integrated low-flow showerhead and TSV, the annual savings is 648 kwh. The annual savings for a kit for a home with a non-electric water heater is 90 kwh. Energy-Saving Kits as Giveaways The giveaway kits contain the same measures as the non-electric ESK. For the nine LED lightbulbs included in the kit, Idaho Power used the RTF s giveaway deemed savings value of 9 kwh per bulb. The annual savings for each giveaway kit is 81 kwh. Page 52

61 Idaho Power Company Residential Sector Educational Distributions Home Energy Report (HER) Pilot Program Before starting the pilot, the HER Pilot Program benefit cost-ratios were expected to be Pre-pilot modeling assumed 1.5 percent savings across all participating customer groups, including groups that were known to have lower savings potential. Final cost-effectiveness will be determined when the company receives the pilot savings results in summer LED Lightbulbs as Giveaways For the LED giveaways, Idaho Power used the giveaway deemed savings provided by the RTF. The RTF-deemed annual savings of 9 kwh includes assumptions regarding the installation rate, efficiency levels of the existing equipment, and the location of the installation. Student Energy Efficiency Kit Program The cost-effectiveness analysis for the SEEK offering was based on the savings reported by RAP during the 2016 to 2017 school year. RAP calculated the annual savings based on information collected from the participants home surveys and the installation rate of the kit items. Questions on the survey included the number of individuals in each home, water-heater fuel type, flow rate of old showerheads, and the wattage of any replaced lightbulbs. The response rate for the survey was nearly 58 percent. The survey gathers information on the efficiency level of the existing measure within the home and which measure was installed. The energy savings will vary for each household based on the measures offered within the kit, the number of items installed, and the existing measure that was replaced. Based on the feedback received from the 2016 to 2017 school year, RAP projects that each kit saved approximately 290 kwh annually per household on average, and the program saved 2,583,030 kwh annually. These savings include 564,880 kwh from the shower timer that were not previously reported in past RAP reports. Because the savings for the timer was largely behavioral and based mostly on assumptions not captured in the student worksheet, Idaho Power has opted not to include these savings. Not including these shower timer savings, it is estimated that each kit saved 227 kwh annually. A copy of the report is included in Supplement 2: Evaluation. Customer Satisfaction and Evaluations Drying Rack Pilot Project In early 2017, a post-survey was sent to project participants to gather information on potential behavior changes adopted by the participant as well as the participant s overall experience with the project. The post-survey was completed by 754 project participants. When asked how they ve used their clothes dryer since receiving the drying rack, over 27 percent of respondents indicated they used their dryer significantly less while almost 64 percent said they used their dryer somewhat less. The survey asked if the customers adopted certain efficient laundry habits since receiving their drying rack. While some indicated they already had those habits, some respondents indicated they adopted the habit. For instance, when asked if they take clothes out of the dryer while slightly damp, nearly 31 percent of respondents indicated they were already doing this, while over 30 percent indicated they adopted this new habit. When asked if they dry multiple loads back-to back, over 51 percent of respondents indicated they already do this but over 20 percent adopted this new habit. When asked if they noticed a change in their monthly power bill as a result of the changes in their laundry habits, just over 20 percent indicated that they did see a change in their power bill. Page 53

62 Residential Sector Educational Distributions Idaho Power Company Overall, customers were satisfied with the pilot project, with almost 85 percent of respondents indicating they were very satisfied with the pilot and just over 11 percent indicating they were somewhat satisfied. When Idaho Power initially looked at the drying rack pilot, the company used data from the 2011 Residential Building Stock Assessment (RBSA) from NEEA for some of the underlying assumptions regarding the number of laundry and dryer loads per week. The pre-survey conducted in 2016 supported much of those original assumptions. The goal of the pilot was to have customers shift 25 percent of their dryer loads to the drying rack. Based on the pre- and post-survey results, respondents indicated they did shift nearly 25 percent of their drying load. The clothes dryer energy usage is dependent on several factors. One of which is the age and type of clothes washer. Over the years as federal standards for clothes washers have become more efficient, newer clothes washers are using less energy and water than in the past models. The amount of water that remains in the clothes impacts the drying time and energy usage from the clothes dryer. Based on the pre-survey results, over 42 percent of respondents have clothes washers that are 5 to 10 years old. Moreover, the pre-survey indicates that just over 50 percent of customers have a top-loading clothes washer with a center agitator. Top-loading clothes washers with center agitators have traditionally used more water than top-loading clothes washers without a center agitator or front-loading clothes washers. Initially, Idaho Power assumed that using drying rack could offset just over 85 kwh of energy. Based on the survey results, it appears that drying racks, if used consistently, can save nearly 104 kwh annually. Complete results for the drying rack post-survey can be found in Supplement 2: Evaluation. Energy-Saving Kits When customers ordered a kit, they completed a short enrollment survey. Upon receipt of the kit, they were encouraged to return a more in-depth survey to indicate which measures had been installed and how satisfied they were with the ordering process. Results from both surveys are included in Supplement 2: Evaluation. Of the 27,458 electric kits distributed, RAP received 3,767 returned surveys for a response rate of just over 14 percent. Of the 23,281 non-electric kits distributed, RAP received 4,229 returned surveys for a response rate of over 18 percent. The overall response rate was over 16 percent. Approximately 95 percent of respondents indicated they were very satisfied with the kit ordering process, with about 4 percent indicating they were somewhat satisfied. Nearly 91 percent of respondents said they were very likely to tell a friend or family member to order a kit. While just over 45 percent of respondents said they were not aware that Idaho Power had energy efficiency programs and incentives prior to receiving their kit, 98 percent said they were either very likely or somewhat likely to participate in another energy efficiency program. In 2017, 44 percent of participants enrolled based on an invitation received via direct-mail, while 7 percent heard about the program through social media. Energy-Saving Kits as Giveaways Idaho Power did not conduct any formal surveys or evaluations on this offering in Home Energy Report Pilot Program Idaho Power s customer solutions advisors provided support for the HER participants, fielding calls and responding to web inquiries. As of December 29, 25,675 individual customers had received 86,023 Page 54

63 Idaho Power Company Residential Sector Educational Distributions reports. During the same time period, the customer solutions advisors answered 286 HER-related calls for a call rate of 0.33 percent. Of those calls, 142 customers opted out of the HER Pilot Program, indicating a 0.55 percent opt-out rate. LED Lightbulbs as Giveaways Idaho Power conducted no customer satisfaction surveys for this offering in Customers at events and presentations continued to readily express appreciation for receiving free LED lightbulbs. Student Energy Efficiency Kit Program The SEEK program is evaluated annually regarding participant satisfaction. For more details on the SEEK program, view the most recent Energy Wise Program Summary Report located in Supplement 2: Evaluation. Teachers continued to be pleased with the program. One-hundred percent of teachers who completed surveys would recommend the program to other colleagues, and 100 percent would conduct the program again. Student engagement remained high as well. Scores and subject knowledge improved from 60 percent at the onset of the program to 73 percent at the conclusion. Of the 58 percent of students who returned surveys, 67 percent indicated their families changed the way they used energy as a result of the program. Parents also responded favorably, indicating the program was easy to use, they would like to see it continued in local schools, and they would continue to use the kit items at home after completion of the program Program and Marketing Strategies Drying Rack Pilot Project Idaho Power is still reviewing the results of the drying rack project. A new RBSA from NEEA will be released in early Idaho Power plans to review the clothes washer and clothes dryer data from the newest RBSA and compare it to these survey results. The cost-effectiveness of the drying rack will be updated with the new DSM Alternate costs from the IRP as well as the costs of the drying racks. Idaho Power will continue to monitor both the product costs and the savings opportunities in light of the pilot s results. The project may be considered again if/when it appears to meet the cost-effectiveness guidelines. Energy-Saving Kits Idaho Power will continue offering ESKs in Promotional materials will be readily available at larger events. Social media posts and other advertising in Idaho publications and on the website will promote ESKs. Targeted direct-mail campaigns will also be employed. Additionally, Idaho Power will augment its ESK program by providing a smaller kit to new Idaho Power customers. The welcome kit will cross-promote other energy efficiency programs, including the ESK offering, and encourage new customers to adopt energy efficient behaviors and choices upon moving into their new homes. Energy-Saving Kits as Giveaways Idaho Power will continue to give away the basic non-electric water-heating kit, in limited quantities, at presentations and small events to garner interest in energy efficiency. Page 55

64 Residential Sector Educational Distributions Idaho Power Company Home Energy Report Pilot Project A formal survey and review of customer satisfaction will take place at the conclusion of the pilot program in July/August of Based on results, decisions will be made to continue and/or scale the program. LED Lightbulbs as Giveaways Idaho Power plans to continue offering LED lightbulbs to customers at community events, presentations, and during customer visits. Student Energy Efficiency Kit Program Plans for the 2017 to 2018 school year include updating the marketing flyer and marketing for distribution to more remote schools and districts. The company will continue to leverage the positive relationships Idaho Power s community education representatives have within the schools to maintain program participation levels. It will also increase the visibility of enrollments in an effort to add an element of competition among the geographic regions. Curriculum will be reviewed for continued relevance to state standards. Other Educational Distributions Idaho Power will continue to look for opportunities to engage customers with new technologies that stress the importance of energy-efficient behaviors at home. Idaho Power is also looking for responsible ways to integrate smart power strips into its program offerings. Page 56

65 Idaho Power Company Residential Sector Energy Efficient Lighting Energy Efficient Lighting Participation and Savings Participants (lightbulbs) 1,766,758 1,442,561 Energy Savings (kwh) 37,765,190 21,093,813 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $4,787,259 $3,009,970 Oregon Energy Efficiency Rider $84,223 $63,200 Idaho Power Funds $1,406 $7,538 Total Program Costs All Sources $4,872,888 $3,080,708 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.012 $0.014 Total Resource Levelized Cost ($/kwh) $0.026 $0.049 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description Idaho Power and other regional utilities participate in the Simple Steps, Smart Savings program which is managed by CLEAResult. Idaho Power promotes Simple Steps, Smart Savings offerings to customers in two areas: this lighting program and the appliance promotion program (see the Simple Steps, Smart Savings section of this report). Initiated in 2002, the Energy Efficient Lighting program follows a markdown model that provides incentives directly to manufacturers or retailers, with discounted prices passed on to the customer at the point of purchase. The benefits of this model are low administration costs, better availability of products to the customer, and the ability to provide an incentive for specific products. The program goal is to help Idaho Power s Idaho and Oregon residential customers afford more efficient lighting technology. ENERGY STAR lightbulbs, including compact fluorescent lightbulbs (CFL) and LEDs, are a more efficient alternative to standard incandescent and halogen incandescent lightbulbs. Lightbulbs come in a variety of wattages, colors, and styles, including lightbulbs for three-way lights and dimmable fixtures. ENERGY STAR lightbulbs use 70 to 90 percent less energy and last 10 to 25 times longer than traditional incandescent lightbulbs. Idaho Power pays a flat fee for each kwh of energy savings achieved. A portion of the funding Idaho Power provides is used to buy down the price the product, and a portion is applied to administration and marketing which varies and can be used for retailer promotions. Promotions include special product placement, additional discounts, and other retail merchandising tactics designed to increase sales. Page 57

66 Residential Sector Energy Efficient Lighting Idaho Power Company In addition to managing the program s promotions, CLEAResult is responsible for contracting with retailers and manufacturers, providing marketing materials at the point of purchase, and supporting and training retailers. Program Activities On January 1, 2017, the US Environmental Protection Agency (EPA) released the Eligibility Criteria Version 2.0, which defines the performance requirements that lightbulbs must meet to maintain the ENERGY STAR rating. As a result of the new specification, most CFL lightbulbs no longer met the ENERGY STAR rating requirements. Lightbulbs manufactured before January 1, 2017, that had the ENERGY STAR certification did qualify for the Simple Steps markdown price, however after May 2017 no CFL lightbulbs were included in the Energy Efficient Lighting program. In 2017, LED lightbulbs comprised 90 percent of lightbulb sales for the year, an increase from the 59 percent of lightbulb sales in LED fixtures comprised approximately 5 percent of lighting sales, which was the same proportion as In 2017, through the BPA Simple Steps, Smart Savings program, Idaho Power worked with 19 participating retailers, representing 129 individual store locations throughout its service area. Of those participating retailers, 58 percent were smaller grocery, drug, and hardware stores, and the remaining 42 percent were large retailers. Marketing Activities Several Simple Steps, Smart Savings promotions were conducted through CLEAResult at retail stores in These promotions generally involved special product placement and signs. CLEAResult staff continued to conduct monthly store visits in 2017 to check on stock, point-of-purchase signs, and displays. Additionally, CLEAResult staffed 13 lighting events at local Home Depot and Costco stores to educate customers about the importance of using LED lightbulbs and the Simple Steps promotion. Additional activities in 2017 involved education and marketing. During events where Idaho Power sponsored a booth and distributed LED lightbulbs, customers were informed about the importance of using energy-efficient lighting, the quality of LED lightbulbs, and the special pricing available for the Simple Steps, Smart Savings products. The company continued to host an Energy Efficient Lighting program website; to make available a Change a Light program brochure, designed to help customers select the right lightbulb for their needs; and to discuss energy-efficient lighting with customers at community events. Also, ads for the Fridge and Freezer Recycling Program promoted the free LED lightbulb offer. Several #TipTuesday posts on social media throughout the year also focused on energy-efficient lighting. The Idaho Power winter Energy Efficiency Guide and the January issue of Connections also recommended using ENERGY STAR certified light bulbs. Cost-Effectiveness In 2017, the Energy Efficient Lighting program provided 58 percent of all energy savings derived from residential energy efficiency customer programs and 23 percent of Idaho Power s energy efficiency portfolio savings. Page 58

67 Idaho Power Company Residential Sector Energy Efficient Lighting In August 2015, RTF updated and revisited the assumptions for both CFLs and LEDs to account for market changes due to the federal standards compliance. The number of lightbulb types was further reduced to combine three-way with general-purpose and dimmable lightbulbs. Additionally, the lumen categories were shifted to reflect current consumer trends. Due to the timing of the RTF s update, BPA and CLEAResult implemented the new savings in 2017 in the Simple Steps, Smart Savings promotion. The RTF LED workbook version 4.2 was the source of most lighting savings assumptions throughout Idaho Power s residential program offerings. For other non-rtf lightbulb types, Idaho Power used the site savings approved by the BPA for the Simple Steps, Smart Savings promotion. RTF reviewed and approved new savings for LEDs in January 2017 and again in December Based on the timing of when BPA and CLEAResult adopt new savings from the RTF, these updates will be reflected in the 2018 and 2019 program year. For detailed cost-effectiveness assumptions, metrics, and sources, see Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations Idaho Power conducted no customer satisfaction surveys or program evaluations in Program and Marketing Strategies Idaho Power will continue to participate in the Simple Steps, Smart Savings lighting program in 2018 by contracting with CLEAResult, who was awarded the annual BPA implementation contract. New savings will be calculated using the new RTF workbook, version 5.2. Idaho Power will monitor the number of participating retailers and geographic spread of these retailers and develop online promotions that allow customers to access promotional pricing regardless of location. CLEAResult will manage marketing at retailers, including point-of-purchase signs, special product placement, and displays. The program specialist and customer representatives will continue to staff educational events to promote the importance of using energy-efficient lighting. Page 59

68 Residential Sector Energy House Calls Idaho Power Company Energy House Calls Participation and Savings Participants (homes) Energy Savings (kwh) 428, ,859 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $170,691 $188,253 Oregon Energy Efficiency Rider $12,008 $15,815 Idaho Power Funds $336 $2,368 Total Program Costs All Sources $183,035 $206,437 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.032 $0.029 Total Resource Levelized Cost ($/kwh) $0.032 $0.029 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description Initiated in 2002, the Energy House Calls program gives homeowners of electrically heated manufactured homes an opportunity to reduce electricity use by improving the home s efficiency. Specifically, this program provides free duct-sealing and additional efficiency measures to Idaho Power customers living in Idaho or Oregon who use an electric furnace or heat pump. Participation is limited to one service call per residence for the lifetime of the program. Services and products offered through the Energy House Calls program include duct testing and sealing according to Performance Tested Comfort System (PTCS) standards set and maintained by the BPA; installing up to eight LED lightbulbs; testing the temperature set on the water heater; installing water heater pipe covers when applicable; installing up to two low-flow showerheads, one bathroom faucet aerator, and one kitchen faucet aerator; and leaving two replacement furnace filters with installation instructions and energy efficiency educational materials appropriate for manufactured-home occupants. Idaho Power provides contractor contact information on its website and marketing materials. The customer schedules an appointment directly with one of the certified contractors in their region. The contractor verifies the customer s initial eligibility by testing the home to determine if it qualifies for duct-sealing. Additionally, contractors have been instructed to install LED lightbulbs only in high-use areas of the home, to replace only incandescent lightbulbs, and to install bathroom aerators and showerheads only if the upgrade can be performed without damage to a customer s existing fixtures. The actual energy savings and benefits realized by each customer depend on the measures installed and the repairs and/or adjustments made. Although participation in the program is free, a typical cost for a similar service call would be $400 to $600, depending on the complexity of the repair and the specific measures installed. Page 60

69 Idaho Power Company Residential Sector Energy House Calls Program Activities In 2017, 335 homes received products and/or services through this program, resulting in 428,819 kwh savings (Figure 23) Homes Figure participation in the Energy House Calls program Of the total participating homes, 46 percent were located in the Canyon West Region, 27 percent were located in the Capital Region, and 27 percent were located in the South East Region. Canyon-West 46% South-East 27% Capital 27% Figure Energy House Calls participation by region Duct-Sealing Each year, a number of customers who apply for the Energy House Calls program cannot be served because their ducts do not require duct-sealing or cannot be sealed, for various reasons. These jobs are billed as a test-only job. On some homes, it is too difficult to seal the ducts, or the initial duct blaster test identifies the depressurization to be less than 150 cubic feet per minute (CFM) and duct-sealing is not needed. Additionally, if after sealing the duct work the contractor is unable to reduce leakage by 50 percent, the contractor will bill the job as a test-only job. Prior to 2015, these test-only jobs were not reported in the overall number of jobs completed for that year, because there was no kwh savings to report. Because Idaho Power now offers direct-install measures in addition to the duct-sealing component, all homes are reported. While some homes may not have been duct-sealed, all would have Page 61

70 Residential Sector Energy House Calls Idaho Power Company had some of the direct-install measures included, which would allow Idaho Power to report kwh savings for those homes. Of the 335 homes that participated in 2017, 39 homes were serviced as test-only. If a home had a blower door and duct blaster test completed, and it is determined that only duct-sealing is necessary, it will be billed as a test and seal. For a home with an x-over duct system that needs replaced in addition to the duct-sealing, it will be charged as an x-over. When a home requires the existing belly-return system to be decommissioned and have a new return installed along with the duct-sealing, it will be billed as a complex system. A complex system that also requires the installation of a new x-over and duct-sealing will be billed as a complex system and x-over job. Figure Energy House Calls participation by job type Direct-Install Measures In 2017, contractors installed 2,654 LED lightbulbs, which was a decrease from the 3,079 installed in There were 130 showerheads, 272 bathroom aerators, and 166 kitchen aerators installed, compared with 2016 installations of 206 showerheads, 351 bathroom aerators, and 233 kitchen faucet aerators. Contractors have noted that they ve seen a decrease in direct-install measures, as customers have commented that they have already installed the provided products after receiving their free ESKs from Idaho Power. Of the 335 invoiced projects for 2017, 89 of those customers had received their kits. Marketing Activities Idaho Power sent two bill inserts to all residential customers in Idaho and Oregon in The March bill insert was shared with the Rebate Advantage program and sent to 375,469 customers, and the October bill insert was shared with the Fridge and Freezer Recycling Program and was sent to 345,278 customers. The company sent postcards in March, July, and October to residents of electrically heated manufactured homes who had not yet participated in the program. Written in English and Spanish, 8,975 postcards were delivered in March, 9,863 in July, and 9,442 in October. A Facebook ad ran in May and reached 47,558 people, resulting in 1,268 website clicks and an increase in enrollments. In addition, Idaho Power customer representatives and customer service representatives knowledgeable about the program continued to promote the program to qualified customers. Page 62

71 Idaho Power Company Residential Sector Energy House Calls Cost-Effectiveness In 2017, Idaho Power used the same RTF savings for duct-sealing in manufactured homes as were used in Savings and a cost-effectiveness analysis for the direct-install measures, including low-flow showerheads, faucet aerators, and LED lightbulbs, were completed using deemed savings from the RTF. For more detailed information about the cost-effectiveness savings and assumptions, see Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations To monitor quality assurance (QA) in 2017, third-party verifications were conducted by Momentum, LLC on approximately 5 percent of the 335 participant homes, resulting in 18 home audits. Homes were selected at random. The QA reports indicate customers were pleased with the work contractors completed in their homes. Each home inspection included an on-site visual confirmation that the reported work had been completed. Weather permitting, blower door and duct blaster tests were also conducted to verify the results submitted by the contractor Program and Marketing Strategies Idaho Power will continue to provide free duct-sealing and selected direct-install efficiency measures for all-electric manufactured/mobile homes in its service area. Idaho Power will include program promotional materials in its bills, send direct-mail postcards, and use social media and other proven marketing tactics. New in 2018, Idaho Power plans to place digital ads promoting the program. Contractors and customer representatives will also distribute program literature at appropriate events and presentations. Idaho Power will continue to provide Energy House Calls program postcards to CAP agencies for distribution to customers who need assistance but do not qualify to receive weatherization assistance through these agencies. Page 63

72 Residential Sector Fridge and Freezer Recycling Program Idaho Power Company Fridge and Freezer Recycling Program Participation and Savings Participants (refrigerators/freezers) 2,031 1,539 Energy Savings (kwh) 498, ,186 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $259,480 $250,535 Oregon Energy Efficiency Rider $6,155 $4,555 Idaho Power Funds $307 $2,826 Total Program Costs All Sources $265,942 $257,916 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.080 $0.062 Total Resource Levelized Cost ($/kwh) $0.080 $0.062 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description Since 2009, the Fridge and Freezer Recycling program (formerly See ya later, refrigerator ) has achieved energy savings by removing and recycling qualified refrigerator and stand-alone freezer units from residential homes throughout Idaho Power s service area. Idaho Power uses a third-party contractor to provide most services for this program, including customer service and scheduling, unit pickup, unit recycling, and reporting. Applicants enroll online or by phone, and the contractor screens each to confirm the refrigerator or freezer unit under consideration meets these initial program eligibility requirements: residential grade in working condition and at least 10 cubic feet (ft 3 ) as measured using inside dimensions, but no larger than 30 ft 3. Idaho Power then screens each applicant to confirm participation eligibility and targets older, extra refrigerator and freezer units for maximum savings. As compensation for participation in the program, customers receive two free LED lightbulbs when their units are picked up. Program Activities After suspending the program in November 2015 because JACO Environmental, Inc., suddenly ceased operations and reintroducing the program in June 2016 with a new vendor, Appliance Recycling Centers of America (ARCA), it was determined that the program could no longer satisfy cost-effectiveness requirements. Idaho Power, with the support of the EEAG decided to discontinue the program on December 31, The program was not tariffed in Idaho, and therefore did not require IPUC approval to discontinue. The company s request to discontinue the program in Oregon was approved by the OPUC on November 13, Idaho Power notified customers of the plan to discontinue the program through a variety of Page 64

73 Idaho Power Company Residential Sector Fridge and Freezer Recycling Program marketing tactics, including direct-mail postcards, Facebook and Twitter posts, News Briefs, and an article in Connections included in the October bill. Customers had the opportunity to enroll in the program through December 31, Units will continue to be picked up through the first half of 2018, or until all scheduled pickups have been completed. Customers will continue to receive their two free LED lightbulbs at the time of pickup. The program saw a significant increase in participation as a result of the bill inserts in May through October. There were 2,031 pickups in 2017, which is an increase from the 1,539 pickups completed in 2016; the announcement to sunset the program seems to have driven up participation. Figure Fridge and Freezer Recycling Program participation by year Marketing Activities In 2017, the program s Retire Your Old Fridge marketing campaign was selected as a finalist for the Annual Crowd Pleaser Contest as part of the 2017 E Source Utility Ad Awards Contest. Once it was determined that the program would sunset at the end of 2017, Idaho Power updated its marketing to include this message with a fun adaption of the retirement theme previously used in marketing materials. Page 65

74 Residential Sector Fridge and Freezer Recycling Program Idaho Power Company Figure 27. Fridge and Freezer Recycling Program Facebook Graphic Idaho Power placed a Facebook ad in December targeted to customers ages 18 to 65 or older to inform them of the program ending. The ad reached 110,007 customers and resulted in 2,643 clicks to the Fridge and Freezer Recycling Program web page. In addition, posts on Facebook and Twitter ran in February, April, May, July, September, November, and December. Bill inserts were sent to 374,416 residential customers in May, 374,283 customers in June, 373,710 customers in July, 369,051 customers in August, and a combined bill insert with Energy House Calls was sent to 345,278 customers in October. Additionally, the January issue of Connections included a mention of the program, and the October issue discussed the program in further detail. The program was also mentioned in the summer Energy Efficiency Guide and to some customers who received a HER from Idaho Power as an energy saving tip. A postcard announcing the end of the program was mailed to six customer demographic segments that were more likely to participate in this recycling program: 14,572 Idaho customers in October and 328 Oregon customers in November. A News Brief was sent to local media in November announcing the program end date. Cost-Effectiveness The Fridge and Freezer Recycling Program has a UC of 0.60 and a TRC of The program s costeffectiveness has been an ongoing discussion with EEAG since 2014 due to declining participation levels, deemed savings, and DSM Alternate costs. Previously, RTF provided savings simply based on whether a refrigerator or freezer was being recycled. In late 2015, the RTF began differentiating the refrigerator and freezer savings based on the vintage of the unit. Between 1987 and 2014, new federal standards for refrigerators and freezers were adopted four times. The second federal standard adopted by the DOE became effective in 1993, and the RTF chose this year as a cut off for determining savings values by vintage. Because refrigerators and freezers manufactured on or before 1992 use more energy than those manufactured 1993 and later, recycling those older units save customers more energy. Page 66

75 Idaho Power Company Residential Sector Fridge and Freezer Recycling Program When the program began in 2009, 90 percent of the freezers recycled were 1992 and older. In 2017, 55 percent of freezers were of that vintage. In 2009, 78 percent of refrigerators recycled in the program were vintage year 1992 and older. By 2017, 26 percent of the refrigerators were that vintage. Because trends show that newer units are being recycled in the program, Idaho Power finds it appropriate to use the vintage-specific deemed savings from the RTF. In early 2017, Idaho Power projected that if the program recycled 1,800 units, it would fail both the UC and the TRC. The company agreed to continue monitoring the program and update EEAG. By midsummer, the program had recycled only 790 units, and it appeared the program would be on pace to recycle only 1,500 units by year end. The program was projected to not be cost-effective under either test. The program s higher than anticipated UC and TRC was largely due to the large push toward the end of the year to increase the program s participation before its discontinuation as well as a reduction to the program s administrative costs. Due to updated savings from the RTF, the program is still anticipated to be not cost-effective in future years. For cost-effectiveness details and assumptions, see Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations ARCA tracked individual statistics for each unit collected, including: how customers heard about the program, when customers enrolled, the age of the unit, its location on the customer s property, and other data. The 2017 data also showed 17 percent of units were stand-alone freezers, and 83 percent were refrigerators. Sixty-nine percent of the units were secondary and 31 percent were primary. ARCA and Idaho Power also tracked data related to the marketing effectiveness of the program. Results of customer tracking information indicate the majority of customers learned about the program through their bill insert or direct-mail postcard (Figure 28). Page 67

76 Residential Sector Fridge and Freezer Recycling Program Idaho Power Company Figure 28. How customers heard about Fridge and Freezer Recycling Program in 2017 Since the start of the program, the percentage of units collected that were manufactured between 1965 and 1992 the vintage that is generally the least efficient has declined. Because they are the least efficient units, they represent the largest savings opportunity. As the program has picked up fewer of these units over the years, the average savings per unit for the entire program has declined. For example, when the program began in 2009, 90 percent of the units collected were manufactured before In 2017, only 31 percent of the units collected were of that vintage Program and Marketing Strategies Idaho Power discontinued its Fridge and Freezer Recycling Program effective December 31, Those pickups that were scheduled prior to the discontinuance date will be picked up through mid Page 68

77 Idaho Power Company Residential Sector Heating & Cooling Efficiency Program Heating & Cooling Efficiency Program Participation and Savings Participants (projects) Energy Savings (kwh) 1,138,744 1,113,574 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $575,404 $545,454 Oregon Energy Efficiency Rider $18,920 $27,184 Idaho Power Funds $2,874 $22,275 Total Program Costs All Sources $597,198 $594,913 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.041 $0.036 Total Resource Levelized Cost ($/kwh) $0.099 $0.085 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description The H&CE Program provides incentives to residential customers in Idaho Power s Idaho and Oregon service area for the purchase and proper installation of qualified heating and cooling equipment and services. Initiated in 2007, the objective of the program is to acquire energy savings by providing customers with energy-efficient options for electric space heating and cooling. Incentive payments are provided to residential customers for all measures. Three of the measures also include a payment to the installing contractor. The available measures in 2017 include ducted air-source heat pumps, ducted open-loop water-source heat pumps, ductless air-source heat pumps, duct-sealing, whole-house fans (WHF), electronically commutated motors (ECM), evaporative coolers, and smart thermostats. Idaho Power requires licensed contractors to perform the installation services related to all of these measures, except evaporative coolers. The H&CE Program s list of measures and incentives includes the following: The customer incentive for replacing an existing ducted air-source heat pump with a new ducted air-source heat pump is $250 for a minimum efficiency 8.5 Heating Seasonal Performance Factor (HSPF). The customer incentive for replacing an existing oil or propane heating system with a new ducted air-source heat pump is $400 for a minimum efficiency 8.5 HSPF. Participating homes must be located in areas where natural gas is unavailable. The customer incentive for replacing an existing electric forced-air or zonal electric heating system with a new ducted air-source heat pump is $800 for a minimum efficiency 8.5 HSPF. Page 69

78 Residential Sector Heating & Cooling Efficiency Program Idaho Power Company The incentive for customers or builders of new construction installing a ducted air-source heat pump in a new home is $400 for a minimum efficiency 8.5 HSPF. Participating homes must be located in areas where natural gas is unavailable. The customer incentive for replacing an existing ducted air-source heat pump with a new ducted open-loop water-source heat pump is $500 for a minimum efficiency 3.5 coefficient of performance (COP). The customer incentive for replacing an existing electric forced-air or zonal electric, oil, or propane heating system with a new ducted open-loop water-source heat pump is $1,000 for a minimum efficiency 3.5 COP. Participating homes with oil or propane heating systems must be located in areas where natural gas is unavailable. The incentive for customers or builders of new construction installing a ducted open-loop water-source heat pump in a new home is $1,000 for a minimum efficiency 3.5 COP. Participating homes must be located in areas where natural gas is unavailable. The customer incentive for displacing a zonal electric heating system with a new ductless air-source heat pump is $750. The customer incentive for duct-sealing services performed in an existing home with an electric forced-air heating system or a heat pump is $350. The customer incentive for a WHF installed in an existing home with central A/C, zonal cooling, or a heat pump is $200. The customer incentive for replacing a Permanent Split Capacitor (PSC) air handler motor with an ECM in an existing home with oil or propane or natural gas forced-air heat, electric forced-air heat, or a heat pump is $50. The customer incentive for installing an evaporative cooler is $150. The customer incentive for a smart thermostat installed in an existing home with an electric forced-air furnace or a heat pump is $75. Idaho Power uses Honeywell, Inc., a third-party contractor, to review and enter incentive applications into the Idaho Power system. Honeywell reviews and submits incentive applications for Idaho Power payment using a program database portal developed by Idaho Power. This allows Idaho Power to maintain the database within the company s system, which is secure yet accessible to the third-party contractor. They also perform on-site verifications (OSV) and provide technical support to the customer representatives and contractors. Honeywell offers local program and technical assistance to contractors through on-site visits at their businesses. Program Activities In 2017, Idaho Power considered adding a new measure through the program: a cash incentive to customers who install a HPWH. During the development stage of this measure, the company provided updates and requested input from EEAG at quarterly meetings. Specifically, EEAG agreed that the program should not require formal training for anyone installing the HPWH. EEAG s overall Page 70

79 Idaho Power Company Residential Sector Heating & Cooling Efficiency Program feedback regarding the measure was positive. With EEAG s support, Idaho Power completed all preparations by December 29, 2017, for a January 1, 2018, launch date. The expansion of Idaho Power s work with contractors remained a key growth strategy for the program. Idaho Power s goal is to support contractors that currently participate in the program while introducing the program to new contractors. The company held meetings with several new contractors to support this strategy in To participate in this program, a contractor must first complete the required training regarding program guidelines and technical information on HVAC equipment. Idaho Power provided 34 one-on-one training sessions with contractors in The 2017 H&CE Program paid incentives are listed in Table 8. Table 8. H&CE Program incentives in 2017 Incentive Measure 2017 Project Quantity Ducted Air-Source Heat Pump Ducted Open-Loop Water-Source Heat Pump... 6 Ductless Heat Pump Evaporative Cooler Whole-House Fan Electronically Commutated Motor Duct-Sealing Smart Thermostat Marketing Activities Idaho Power used multiple marketing methods for its H&CE Program. The company mailed a bill insert to 374,459 residential customers in April and 363,486 residential customers in September. Information about the program was also included in the August and December issues of Home Energy Reports. The company sent a direct-mail postcard highlighting each incentive to 32,876 customers in February and 39,578 customers in August. The postcards were customized for the season and designed to reach customers as they were receiving higher heating and cooling bills. Several social media and #TipTuesday posts throughout 2017 focused on heating- and cooling-related tips. New in 2017, Idaho Power used banner and messenger ads (Figure 29) to promote its H&CE Program. The ads targeted the Boise, Payette, Pocatello, and Twin Falls regions. The banner ads received 1,281,816 impressions, 2,008 clicks, and a click-through-rate of 0.12 percent. The messenger ads received 1,339,016 impressions, 17,578 clicks, and a click-through-rate of 1.28 percent. Page 71

80 Residential Sector Heating & Cooling Efficiency Program Idaho Power Company Figure 29. H&CE Program digital ad The company also ran a Facebook ad in February and July promoting the program during extreme temperatures. The February ad reached 121,740 people and resulted in 400,082 impressions and 3,275 clicks to the heating and cooling website. The July ad reached 100,885 people and earned 321,711 impressions and 2,839 website clicks. Idaho Power also displayed products the H&CE Program incentivizes, such as an ECM motor, sealed ductwork, and a smart thermostat in the Idaho Power trade show booth. Table-top posters were included to encourage customers to ask about the products and their incentives. In 2017, Idaho Power included an ad promoting ductless heat pumps (DHP) as part of the company s overall residential energy efficiency campaign. The ductless heat pump ad was featured in the April issue of Connections as well as a variety of mass-media locations. Full details on where the campaign ads appeared can be found in the Marketing section of this report. Cost-Effectiveness The H&CE Program has a UC of 1.48 and TRC of In 2016, Idaho Power reviewed the program s cost-effectiveness and notified EEAG at the August 30, 2016, meeting that the program was anticipated to be not cost-effective from the TRC perspective. Throughout 2017, Idaho Power discussed with EEAG proposed tactics it would implement to improve the program s overall costeffectiveness. These tactics include re-assigning non-program labor, reducing marketing spend while improving other tactics, and removing the stipend to participating contractors. Idaho Power also proposed to report the cost-effectiveness of the ductless heat pumps, which are not cost-effective, separately from the rest of the program. After reviewing the costs that were allocated to the ductless heat pump portion of the program compared to the rest of the program, it appears that the DHP portion of the program was only allocated 13 percent of the total administrative costs. As result, the DHP portion of the program had a UC of 1.87 and TRC of 0.80 while the rest of the program had a UC of 1.35 and TRC of Idaho Power filed changes to the program in October 2017 with the OPUC. Effective January 1, 2018, the contractor stipend will be reduced from $150 to $50 and HPWH will be added to the measure offerings. The inclusion of the HPWH measure may increase the potential energy savings in the Page 72

81 Idaho Power Company Residential Sector Heating & Cooling Efficiency Program program without significantly increasing administrative costs which may improve the program s overall cost-effectiveness. The company plans to continue to monitor this program and seek opportunities to improve the program s overall cost-effectiveness. DHPs and open-loop water source heat pumps are not cost-effective. RTF ground source heat pump savings were used for the open-loop water source heat pumps. The RTF costs were used for DHP cost-effectiveness analysis because the DHP measure definition was changed to reflect differing heating system performance factors. The company does not have sufficient cost data from its projects to split out costs by different levels of efficiency. These measures have cost-effectiveness exceptions with the OPUC under UM In addition to these measures, smart thermostats are not cost-effective. Idaho Power received a cost-effectiveness exception with the OPUC under Advice No due to the measure being a pilot. Other measures that are shown to not be cost-effective are air-source heat pumps and duct-sealing. However, these measures would be cost-effective if administration costs were not included in the cost-effectiveness analysis. For detailed information about the cost-effectiveness savings, sources, calculations, and assumptions, see Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations Honeywell performed random OSV on 65 (10 percent) of the completed installations in Idaho Power s service area. These OSVs confirmed that the information submitted on the paperwork matched what was installed at customers sites. Overall, the OSV results were favorable with respect to the contractors quality of work. The program specialist continues to work with contractors to help them understand the importance of accurate documentation and quality installations. Idaho Power accessed additional information from other sources. In 2017, NEEA provided these three reports to Idaho Power. Northwest Heat Pump Water Heater Initiative: Market Progress Evaluation Report #3 Interaction between Heat Pump Water Heaters or Other Internal Point Source Loads and a Central Heating System Quick Connect Phase 2 Report Links to the final reports can be found in Supplement 2: Evaluation. DNV GL conducted a process and impact evaluation on this program in The evaluation results indicated that the program is operating well and meeting its objectives. Program specialists are aware of program operations, and most of the program processes are in good working order. The total reported savings for the program were 1,113,574 kwh. The total verified savings are 1,126,591 kwh, for a realization rate of The differences in estimated versus realized savings were due primarily to changes in the RTF specifications for calculating savings. The 90-percent confidence interval for the verified savings estimate is +/- 6,867 kwh, or 0.6 percent. This far exceeds the 90/10 target for precision. A copy of the final report can be found in Supplement 2: Evaluation. Page 73

82 Residential Sector Heating & Cooling Efficiency Program Idaho Power Company 2018 Program and Marketing Strategies Idaho Power will continue to provide program training to existing and prospective contractors to assist them in meeting program requirements and furthering their product knowledge. Sessions will be held at contractor businesses and at Idaho Power facilities. Training sessions remain an important part of the program because they create opportunities to invite additional contractors into the program. The sessions also provide refresher training for contractors already participating in the program, and help them increase their customers participation while improving the contractors work quality. An additional dozen other interested companies will be taken through the training process by the program specialist. To reduce program administrative costs and improve the program s overall cost-effectiveness, the contractor incentive to vendors will be reduced from $150 to $50. When Idaho Power first offered the H&CE Program, the contractor incentive of $150 was proposed to encourage participating contractors to perform quality commissioning controls and sizing of the heat pump installations. The intent of the contractor incentive was to offset the additional costs associated with those quality installations and the costs of the contractor to complete the paperwork for the customer. In reviewing the current practices in Idaho Power s service area, it was determined that these quality installations are common practice even absent a contractor incentive. Developing the existing network of contractors participating remains a key strategy for the program. The performance of the program is substantially dependent on the contractors abilities to promote and leverage the measures offered. Idaho Power s primary goal in 2018 is to develop contractors currently in the program while adding new contractors. To meet this objective, the program specialist, along with Idaho Power customer representatives, will arrange frequent individual meetings to discuss the program with contractors in The 2018 marketing strategy will include bill inserts, direct-mail, social media, digital and search advertising, and trade show displays to promote individual measures and the program as a whole. Page 74

83 Idaho Power Company Residential Sector Home Energy Audit Home Energy Audit Participation and Savings Participants (homes) Energy Savings (kwh) 175, ,249 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $281,125 $278,959 Oregon Energy Efficiency Rider $0 $0 Idaho Power Funds $1,684 $10,853 Total Program Costs All Sources $282,809 $289,812 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.146 n/a Total Resource Levelized Cost ($/kwh) $0.182 n/a Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a n/a Total Resource Benefit/Cost Ratio n/a n/a Description The current Home Energy Audit program is based on the insights gained from the Boise City Home Audit project conducted in 2011 and 2012, as described in the Demand-Side Management 2012 Annual Report. In 2014, the audit project became Idaho Power s Home Energy Audit program. A certified, third-party home performance specialist conducts an in-home energy audit. The audit is used to identify areas of concern, and to provide specific recommendations to improve the efficiency, comfort, and health of the home. The audit includes a visual inspection of the crawl space and attic, a health and safety inspection, and a blower door test to identify and locate air leaks. In addition to the audit, some energy-saving improvements are installed at no cost to the customer, if appropriate. After the audit is complete, the customer is supplied with a hard copy or password-protected electronic copy of the home performance specialist s findings and recommendations. Direct-install improvements include the following: Up to 20 efficient lightbulbs (CFL and LED) One high-efficiency showerhead Pipe insulation from the water heater to the home wall (approximately 3 ft) To qualify for the Home Energy Audit program, a participant must live in Idaho and be the customer of record for the home. Renters must have prior written permission from the landlord. Single-family sitebuilt homes, duplexes, triplexes, and fourplexes qualify, though multi-family homes must have discrete heating units and meters for each unit. Manufactured homes, new construction, or buildings with more than four units do not qualify. Page 75

84 Residential Sector Home Energy Audit Idaho Power Company In 2016, the program changed from being for all-electric homes only to being fuel-neutral. Participating customers pay $99 (all-electric homes) or $149 (other homes: gas, propane, or other fuel sources) for the audit and installation of measures, with the remaining cost covered by the Home Energy Audit program. The difference in cost covers the additional testing that is necessary for homes that are not all-electric. These types of energy audits normally cost $300 or more, not including the select energy-saving measures, materials, and labor. The retail cost of the materials installed in each home averages $145. Program Activities Four home performance specialist companies served the program in Homes were randomly assigned to the home performance specialists serving each service area, grouping locations to save on travel time and expense. In 2017, the program completed 520 energy audits. The average age of participating homes was 36 years old. The homes were built between 1890 and Home sizes ranged from 600 square feet (ft 2 ) to 24,000 ft 2, with 2,441 ft 2 average home size. Figure 30 depicts the program s reach across Idaho Power s service area, and Figure 31 depicts the space and water heating fuel types. Figure 30. Home Energy Audit summary of participating homes in 2017, by county Page 76

85 Idaho Power Company Residential Sector Home Energy Audit Figure 31. Home Energy Audit summary of space and water heating fuel types, 2017 The home performance specialists collected information on types and quantities of appliances and lighting in each home. The average number of incandescent lights per home was 18, and the average number of fluorescent or LED lights was 15. When performing an audit, the home performance specialist determined which available measures were appropriate for the home, and, with homeowner approval, those measures were installed. Figure 32 indicates the total quantity of items installed by measure. Figure 32. Home Energy Audit measures installed in participating homes in 2017 As Idaho Power s existing stock of CFLs has been used and the cost of LEDs has come down, all new lightbulb orders are for LEDs, including reflectors, which changed to LEDs in October The QA goal for the program was inspection of 5 percent of all audits, translating into approximately 26 audits in Ultimately, 43 QAs were completed in 2017, with all audits passing inspection. Page 77

86 Residential Sector Home Energy Audit Idaho Power Company Marketing Activities In 2017, the Home Energy Audit collection of marketing collateral (including bill inserts, brochures, stickers, digital graphics, etc.) was updated to match the illustrated look and feel of the overall campaign. Figure 33. Example of Home Energy Audit program ad Idaho Power recruited participants for the program through small batches of 1,000 to 2,000 direct-mail letters, targeted to areas where auditors were visiting and toward customers with a propensity to participate. Customers interested in participating were directed to a website for additional information and the online application. Those who did not have internet access or were uncomfortable using the online application were encouraged to call Idaho Power to apply. A program brochure was added to some mailings, but did not result in an increase in enrollment compared to mailings without the brochure. In September 2017, Idaho Power collaborated with the University of Idaho s Valley County Extension Office to host an energy efficiency workshop in Donnelly, Idaho, as well as hosting one solo in New Meadows. For both, direct-mail letters were sent to residents inviting the community to attend the afternoon and evening workshops. The New Meadows event was sparsely attended, and the Donnelly event was canceled by the U of I Extension Office as not enough residents had registered for it. The New Meadows attendees learned how to check their homes for efficiency, how to make improvements, and how to use My Account. The Home Energy Audit program was emphasized as were various other Idaho Power efficiency programs. For attending, each person was given an LED lightbulb. Page 78

87 Idaho Power Company Residential Sector Home Energy Audit Bill inserts were sent to 327,263 residential customers in March, 362,658 customers in June, 350,190 customers in September and 338,359 residential customers in December. The program was prominently featured in the overall energy efficiency residential marketing campaign, including a specific call-out in the television, print, and radio advertisements. The company also featured a Home Energy Audit ad on the back page of the October issue of Connections. The program was also featured in the October and November HERs. Digital advertising was used in September to target the South-East Region customers and build awareness. A digital tactic called my ad messenger was used in conjunction with traditional, static digital ads. Ad messenger is a scrolling ad that rolls smoothly off and on the screen as users browse through websites. The messenger ads finished with 235,905 impressions, 3,119 clicks and 1.32 percent click-through rate. Cost-Effectiveness One of the goals of the Home Energy Audit program is to increase participants understanding of how their home uses energy and to encourage their participation in Idaho Power s energy efficiency programs. Since the Home Energy Audit program is primarily an educational and marketing program, the company does not apply the traditional cost-effectiveness tests to the program. For the items installed directly in the homes, Idaho Power used RTF savings for direct-install lightbulbs, which range from 14 to 47 kwh per year. RTF savings for 2.0 gpm showerheads directly installed in a home are 91 to 182 kwh per year. In Idaho Power s Energy Efficiency Potential Study, AEG estimates that pipe wraps save 150 kwh per year. Savings for both showerheads and pipe wrap were counted for homes with electric water heaters. In 2017, the RTF reviewed and updated the savings assumptions for LED lightbulbs and showerheads. Additionally, AEG provided new estimates for pipe wrap savings with the 2016 potential study update. These new savings will be applied in Customer Satisfaction and Evaluations Throughout 2017, a survey was sent to 513 customers who had participated in the program between October 2016 and September The purpose of the survey was to assess customers satisfaction with program enrollment, the scheduling, the auditor, the personalized report, and the information learned. Participants who supplied an address on the initial program enrollment form were sent an electronic survey (371 participants); those without an address were sent a hard copy of the survey with a postage-paid envelope (142 participants). The response rate was about 37 percent, with 188 participants responding. When asked a series of questions about their experience with the program, nearly 93 percent of respondents strongly agree or somewhat agree they would recommend the program to a friend or relative, and nearly 94 percent of respondents strongly agree or somewhat agree they were satisfied with their overall experience with the program. And, over 96 percent of the respondents indicated it was very easy or somewhat easy to apply for the program. Home performance specialists were rated on a number of attributes, including courteousness, professionalism, explanation of work/measurement to be performed, explanation of audit recommendations, and overall experience. Respondents rated their home performance specialist as good or excellent 95 to 99 percent of the time. Page 79

88 Residential Sector Home Energy Audit Idaho Power Company When asked how strongly they agree or disagree with statements about what they learned during the audit process, nearly 93 percent of respondents strongly agree or somewhat agree they were more informed about the energy use in their home. Nearly 78 percent reported they strongly agree or somewhat agree they were more informed about energy efficiency programs available through Idaho Power. Almost 91 percent indicated they strongly agree or somewhat agree they learned what additional no-cost to low-cost actions they could take. A copy of the survey results can be found in Supplement 2: Evaluation. Idaho Power contracted with DNV GL to perform an impact evaluation of the program in DNV GL computed an overall realization rate for the program of 98 percent. Lighting and showerheads both had realization rates of 100 percent; pipe insulation had a realization rate of 87 percent. The pipe insulation realization rate was lower because DNV GL used the most recently available AEG potential study for annual savings, which is 130 kwh for single-family homes. The findings and recommendations will be reviewed in first quarter 2018, and a plan will be implemented to improve the program. The entire impact evaluation report can be found in Supplement 2: Evaluation Program and Marketing Strategies Idaho Power will continue recruiting participants through small batches of targeted direct-mailings, social media posts, advertising, and bill inserts. Additional digital advertising may be considered if the program needs to be strategically promoted in specific regions. In the first quarter of 2018, Idaho Power will add a new direct-install audio/visual smart strip to the list of available program measures. The smart strip is an eight-outlet power strip that provides constant power to two of the outlets, and on-demand power to the other six. The constant power is for electronics, such as a cable box or recorder, while the on-demand power is used for peripherals, such as a TV, an amplifier, a DVD player, speakers, etc. The smart strip shuts off the on-demand power when a predetermined amount of time has passed since the device was last used. Since 2014, Idaho Power has been using CakeSystems home auditing software from Earth Advantage. In 2016, Earth Advantage sold the software to Renovate America, but Idaho Power s agreement to use the software remained in place. On November 1, 2017, Earth Advantage notified Idaho Power that it would be discontinuing access to the software as of December 31, Because it is not possible to contract directly with Renovate America, Idaho Power will solicit proposals for replacement software in Customers should not notice any significant change in service. In the meantime, Idaho Power will use the tool created when the program was managed by the company under the City of Boise s approval. Page 80

89 Idaho Power Company Residential Sector Home Improvement Program Home Improvement Program Participation and Savings Participants (homes) Energy Savings (kwh) 415, ,280 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $165,483 $309,799 Oregon Energy Efficiency Rider $0 $0 Idaho Power Funds $1,347 $14,225 Total Program Costs All Sources $166,830 $324,024 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.021 $0.034 Total Resource Levelized Cost ($/kwh) $0.167 $0.174 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description From 2008 to mid-2017, the Home Improvement Program offered incentives for upgrading insulation and windows in electrically heated homes/units. To qualify for an incentive under this program, the home must have been a single-family home, a multi-family structure with individually metered residential units, or a manufactured home in Idaho Power s service area in Idaho. The home/units must have had an electric heating system serving at least 80 percent of the home s conditioned floor area. The heating system could have been a permanently installed electric furnace, heat pump, or electric zonal heating system. Insulation Insulation must have been professionally installed between conditioned and unconditioned space by an insulation contractor. Customer incentives were 15 cents per ft 2 for attic insulation and 50 cents per ft 2 for wall and under-floor insulation for additional insulation professionally installed by Idaho residential customers, multi-family building owners, and property managers in Idaho Power s Idaho service area. Existing attic insulation must have been an R-20 or less to qualify, and the final R-value must have met the local energy code. Idaho Power s service area includes climate zones 5 and 6, resulting in an R-38 requirement for climate zone 5 and R-49 requirement for climate zone 6. The existing insulation level in walls must have been R-5 or less, and the final R-value must have been R-19 or filled the cavity. Page 81

90 Residential Sector Home Improvement Program Idaho Power Company The existing insulation level under floors must have been R-5 or less, and the final R-value must have been R-30 or filled the cavity. Windows Windows must have been professionally installed. Customer incentives were $2.50 per ft 2 of window area to Idaho residential customers for installing energy-efficient windows and/or sliding glass doors with a U-factor of 0.30 or lower. Pre-existing windows/sliding glass doors must have been single- or double-pane aluminum or single-pane wood. Customers must have used a participating contractor to qualify for the Idaho Power incentive, which is processed by Idaho Power. Program Activities For projects completed through June 30, 2017, the Home Improvement Program paid incentives on 355 upgrades as follows: attic insulation (17 percent), under-floor insulation (10 percent), wall insulation (2 percent), and windows (71 percent). Both multi-family and single-family homes took advantage of these program incentives. After careful consideration of the impact on participating and non-participating customers, and the impact on the trade allies, and concerns with the program s cost-effectiveness, the Home Improvement Program was ended effective June 30, Marketing Activities Due to the discontinuation of the Home Improvement Program, marketing efforts focused on communicating the program closure and participation deadline to minimize any negative impact on potential participants and participating contractors. Print material was updated to reflect the program end date, and an article was published in the April issue of Connections. The Home Improvement Program ending date and contractor lists were updated on the Idaho Power website. Facebook posts were used intermittently to alert customers of the program end date. Cost-Effectiveness The Home Improvement Program has not been cost-effective since 2015 from a total resource and participant cost perspective, even with a 45-year savings life on the program measures. Cost-effectiveness details and program year savings and assumptions are available in Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations For QA purposes, third-party contractors performed random reviews of at least 5 percent of all installations completed in the Home Improvement Program. QA contractors verified the correct installation of measures. Of the 18 QA inspections completed in 2017, no major issues were reported. Page 82

91 Idaho Power Company Residential Sector Home Improvement Program 2018 Program and Marketing Strategies The Home Improvement Program was ended on June 30, However, Idaho Power continues to provide incentives related to windows and insulation through its income-qualified weatherization programs. The company also encourages customers to replace windows and insulation as part of general energy-saving tips in the home. Page 83

92 Residential Sector Multifamily Energy Savings Program Idaho Power Company Multifamily Energy Savings Program Participation and Savings Participants (projects) 12 3 Energy Savings (kwh) 617, ,760 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $167,342 $55,758 Oregon Energy Efficiency Rider $0 $0 Idaho Power Funds $874 $3,288 Total Program Costs All Sources $168,216 $59,046 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.026 $0.040 Total Resource Levelized Cost ($/kwh) $0.026 $0.040 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description The Multifamily Energy Savings Program provides for the direct installation of energy-saving products in multi-family dwellings with electrically heated water in Idaho and Oregon. These energy-saving products are installed by an insured Idaho Power contractor at no cost to the property owner, manager, or tenant. The definition of multi-family dwelling is a building consisting of five or more rental units. The products are: ENERGY STAR LED lightbulbs, high-efficiency showerheads (some with integrated TSVs), kitchen and bathroom faucet aerators, and water heater pipe insulation. To ensure energy savings and eligibility, each building is pre-approved by Idaho Power and the contractor who will install the energy efficiency measures. Upon approval, the no-cost, direct installation is scheduled and completed. Tenants in participating apartment complexes receive a tailored door hanger before the service date notifying them that contractors will be entering their home to install energy-saving products. Program Activities The program began in March 2016 with three projects piloted in Pocatello, Boise, and Twin Falls. Twelve projects across the Idaho service area were completed in 2017 as program participation increased. Between these 12 projects, a total of 687 apartment units received the energy-saving products. Marketing Activities Based on customer feedback, the pre-installation door hanger was updated mid-2017 to more clearly communicate the schedule and the types of products the contractor would install inside the customers homes (Figure 34). Once installation was complete, Idaho Power left materials to explain the new energy efficiency measures and to provide contact information should the tenant have any questions. Page 84

93 Idaho Power Company Residential Sector Multifamily Energy Savings Program Figure 34. Multifamily Energy Saving Program door hanger In 2017, a new web page promoting the Multifamily Energy Savings Program was added to the Idaho Power website. A new brochure was mailed to landlords and property owners to increase their awareness of the program. For the last project of 2017, the decision was made to switch from standard high-efficiency showerheads to WaterSense showerheads with integrated ShowerStart TSVs, and new printed instructions on how to use this showerhead were left behind for each resident. Cost-Effectiveness The RTF provides deemed savings for direct-install LED lightbulbs and 2.0 gpm low-flow showerheads. The LED lightbulbs have a deemed savings value of 14 to 60 kwh per year depending on the type and lumens of the lightbulb and the location of the lightbulb installation. The 2.0 gpm low-flow showerhead is estimated to save between 91 to 182 kwh per year. The integrated 1.75 gpm showerheads with TSV is estimated to save 267 kwh per year. For the faucet aerator and pipe wrap, RTF does not provide a deemed savings estimate. In Idaho Power s Energy Efficiency Potential Study AEG estimated the annual faucet aerator savings to be 106 kwh and the annual pipe wrap savings to be 150 kwh. Page 85

94 Residential Sector Multifamily Energy Savings Program Idaho Power Company In 2017, the RTF reviewed and updated the savings assumptions for LED lightbulbs. Additionally, AEG provided new estimates for pipe wrap savings and faucet aerators with the 2016 potential study update. These new savings will be applied in Customer Satisfaction and Evaluations Idaho Power included a satisfaction survey with the leave-behind materials in each apartment. Both an online and mail-in option were offered. The response rate was very low, with only 51 of the 772 residents responding by mailing in the stamped survey cards; no online surveys were submitted. The comments were positive and residents appreciated the installed measures. One resident mentioned that the pre-installation door hanger was difficult to understand, which led to its redesign. Idaho Power conducted no program evaluations in Program and Marketing Strategies Idaho Power plans to increase energy-efficient direct-installation projects in multi-family dwellings throughout its service area in Idaho Power anticipates that future projects will include the installation of WaterSense showerheads with integrated ShowerStart TSVs. Idaho Power will continue to use informative notifications, pre-installation door hangers, and postinstallation informational marketing pieces as well as survey cards. Direct-mailings will be continued to encourage engagement and participation from property owners/managers, and to increase program visibility. Page 86

95 Idaho Power Company Residential Sector Oregon Residential Weatherization Oregon Residential Weatherization Participation and Savings Participants (audits/projects) 7 7 Energy Savings (kwh) 2,154 2,847 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $0 $0 Oregon Energy Efficiency Rider $2,384 $3,906 Idaho Power Funds $0 $24 Total Program Costs All Sources $2,384 $3,930 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.063 $0.079 Total Resource Levelized Cost ($/kwh) $0.099 $0.118 Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a n/a Total Resource Benefit/Cost Ratio n/a n/a Description Idaho Power offers free energy audits for electrically heated customer homes within the Oregon service area. This is a program required by Oregon Revised Statute (ORS) and has been offered under Oregon Tariff Schedule 78 since Upon request, an Idaho Power customer representative visits the customer s home to analyze it for energy efficiency opportunities. An estimate of costs and savings for specific measures is given to the customer. Customers may choose either a cash incentive or a 6.5-percent interest loan for a portion of the costs for weatherization measures. Program Activities Seven customers returned a card from the program brochure indicating interest in a home energy audit, weatherization loan, or incentive payment. Four of these customers did not have electric heat and were advised to contact their heating supplier for program information. Three of these customers met the program requirements and received audits. Two weatherization projects were completed, and received incentives; one customer did not move forward with the recommended energy efficiency upgrades. Idaho Power issued two incentives totaling $ for 2,154 kwh in savings. Both incentives and related savings were for ceiling insulation measures. There were no loans made through this program during Marketing Activities During May, as required, Idaho Power sent every Oregon residential customer an informational brochure about energy audits and home weatherization financing. Page 87

96 Residential Sector Oregon Residential Weatherization Idaho Power Company Cost-Effectiveness The Oregon Residential Weatherization program is a statutory program described in Oregon Schedule 78, which includes a cost-effectiveness definition of this program. Pages three and four of the schedule identify the measures determined to be cost-effective and the specified measure life cycles for each. This schedule also includes the cost-effective limit (CEL) for measure lives of seven, 15, 25, and 30 years. Two savings projects were completed under this program in 2017; both consisted of increasing attic insulation. Combined, the projects annual energy savings is 2,154 kwh at a levelized TRC of $0.10 per kwh over the 30-year attic insulation measure life. Customer Satisfaction and Evaluations Idaho Power conducted no customer satisfaction surveys or program evaluations in Program and Marketing Strategies Idaho Power will complete requested audits, fulfill all incentives deemed cost-effective, and process loan applications as required under Tariff Schedule 78. The company will continue to market the program to customers with a bill insert/brochure in their May bill. Page 88

97 Idaho Power Company Residential Sector Rebate Advantage Rebate Advantage Participation and Savings Participants (participants) Energy Savings (kwh) 214, ,272 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $93,891 $103,056 Oregon Energy Efficiency Rider $10,861 $6,392 Idaho Power Funds $244 $1,602 Total Program Costs All Sources $104,996 $111,050 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.025 $0.016 Total Resource Levelized Cost ($/kwh) $0.055 $0.022 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description Initiated in 2003, the Rebate Advantage program helps Idaho Power customers in Idaho and Oregon with the initial costs associated with purchasing a new, energy-efficient, ENERGY STAR qualified manufactured home. This enables the homebuyer to enjoy the long-term benefit of lower electric bills and greater comfort provided by these homes. The program also provides an incentive to the sales consultants to encourage more sales of ENERGY STAR qualified homes and more discussion of energy efficiency with their customers during the sales process. In addition to offering financial incentives, the Rebate Advantage program promotes and educates buyers and retailers of manufactured homes about the benefits of owning energy-efficient models. The Northwest Energy Efficient Manufactured (NEEM) housing program establishes quality control (QC) and energy efficiency specifications for qualified homes. NEEM is a consortium of manufacturers and state energy offices in the Northwest. In addition to specifications and quality, NEEM tracks the production and on-site performance of ENERGY STAR qualified manufactured homes. Program Activities In 2017, Idaho Power reviewed the results of the 2016 impact and process evaluation conducted by Leidos, Inc., for the Rebate Advantage program. The process evaluation found that the program processes are effective, efficient, and result in a high degree of accuracy in program tracking. The impact evaluation found that the program employs appropriate energy savings estimates for certified manufactured homes and accurately records project information necessary to claim those savings. The evaluation determined a realization rate exceeding 100 percent with excellent precision with 90 percent confidence. Specific evaluation recommendations, and Idaho Power s response to them are explained below. Page 89

98 Residential Sector Rebate Advantage Idaho Power Company Idaho Power residential customers who purchased a new, all-electric, ENERGY STAR qualified manufactured home in 2017 and sited it in Idaho Power s service area were eligible for a $1,000 incentive through the Rebate Advantage program. Salespeople received $200 for each qualified home they sold. During 2017, Idaho Power paid 66 incentives on new manufactured homes, which accounted for 214,479 annual kwh savings. Marketing Activities Leidos recommended posting Facebook ads and providing program brochures directed at customers. It also recommended conducting research to micro target program ads toward manufactured home buyers who bypass dealers and purchase directly via the Internet. Because this program was designed to be a dealer-driven program with dealers educating consumers regarding the benefit of energy-efficient manufactured homes, the company has not attempted to micro-target consumers and has chosen to focus advertising and resources at the dealer level. The company did, however, refresh supply of program brochures at participating dealerships. One bill insert, shared with the Energy House Calls program, was sent to 375,469 customers in Idaho and Oregon in March. A Facebook ad ran in September targeting customers interested in manufactured housing, with homes valued under $99,000, and/or with income levels under $99,999. The ad reached over 58,000 people and resulted in 1,631 link clicks. Idaho Power continued to support manufactured home dealerships in 2017 by providing them with Rebate Advantage program brochures, banners, and applications as needed. The program specialist and the customer representatives visited some of these dealerships to distribute materials, promote the program, and answer questions. Cost-Effectiveness In 2017, Idaho Power responded to Leidos s process evaluation recommendations regarding savings used in the program as follows: First, Leidos recommended Idaho Power review the updated RTF workbook (v4.1) for possible savings value changes for the program. Idaho Power freezes savings assumptions annually during the budgeting process for the following calendar year. For 2018, Idaho Power plans to use RTF workbooks ResMHNewHomesandHVAC_v3_4.xls updated on June 15, RTF does not have a version 4.1 workbook for new construction manufactured homes. Secondly, Leidos recommended the company create a brief memo summarizing the RTF workbook version used, components within the workbook used, and how projects are assigned to cooling and heating zones to improve transparency in ex ante savings reporting. Supplement 1: Cost-Effectiveness of this report serves this role. For Rebate Advantage, Idaho Power lists the measures from the RTF workbook that were used to develop the program savings. The footnotes within the table list the workbook used in the assumptions. Currently the heating and cooling zones are assigned by city; however, the company plans on reviewing the updated climate zone references to align with the current Northwest Power and Conservation Council s (NWPCC) assignments by zip code. Page 90

99 Idaho Power Company Residential Sector Rebate Advantage The Rebate Advantage program has a UC of 1.88 and a TRC of In December 2015, the RTF updated savings for new construction manufactured homes. By updating the new construction baseline and calibrating heating savings, overall deemed savings declined nearly 50 percent. With this program, savings are dependent on the location of the manufactured homes. Homes in heating zone one (Boise area) have lower savings than homes in heating zone three (McCall area). However, the RTF also increased the measure life for the measures from 25 years to 45 years, which positively impacts the costeffectiveness ratios. While the number of participants remain unchanged from 2016 to 2017, the program s UC and TRC ratios dropped from 3.89 and 3.33 respectively to 1.88 and 1.19 because of the lower deemed savings values from the RTF, application of the 2015 DSM Alternate costs, and higher proportion of participation in heating zone one. The RTF updated savings again in 2017 with updated calibrated heating and cooling interactions and lighting assumptions. These new savings and cost assumptions will be used in For detailed information for all measures within the Rebate Advantage program, see Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations Idaho Power conducted no customer satisfaction surveys or evaluations for this program in Program and Marketing Strategies Idaho Power will continue to support manufactured home dealers by providing them with program materials. The company will also distribute a bill insert to Idaho and Oregon customers and will look for additional opportunities to engage potential manufactured home buyers. Page 91

100 Residential Sector Residential New Construction Pilot Program Idaho Power Company Residential New Construction Pilot Program (ENERGY STAR Homes Northwest) Participation and Savings Program Costs by Funding Source Program Levelized Costs Benefit/Cost Ratios Participants (homes) Energy Savings (kwh) 608, ,282 Demand Reduction (MW) n/a n/a Idaho Energy Efficiency Rider $320,637 $138,203 Oregon Energy Efficiency Rider $2,232 $1,510 Idaho Power Funds $651 $2,445 Total Program Costs All Sources $323,520 $142,158 Utility Levelized Cost ($/kwh) $0.028 $0.051 Total Resource Levelized Cost ($/kwh) $0.051 $0.107 Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description Initiated by Idaho Power in 2003 in coordination with NEEA, the ENERGY STAR Northwest Homes Program s objective is to increase the efficiency of the residential-building envelope and air-delivery system above current building codes and building practices in Idaho and Oregon. Idaho Power offers a $1,000 incentive to builders for each new home that uses electric heat pump technology, is at least 15 percent more energy efficient than standard construction, and meets EPA s ENERGY STAR Version 3 certification requirements. Upon completion of the construction, a Residential Energy Services Network (RESNET)-certified rater will enter home data into the regional AXIS database. This database, which is maintained by NEEA, allows NEEA and Idaho Power to track and review project information to determine if program requirements are met. The rater will also generate a Northwest Compliance Report (in accordance with REM/Rate modeling guidelines) that further verifies the home meets the equivalent of ENERGY STAR Version 3 requirements. In 2017, the company began making changes to the program, which will be renamed the Residential New Construction Pilot Program. Program Activities A large part of the program s role in 2017 was to provide marketing support throughout Idaho Power s service area. The company paid incentives for 277 newly constructed, attached townhomes in Idaho. Page 92

101 Idaho Power Company Residential Sector Residential New Construction Pilot Program Marketing Activities Idaho Power maintained a strong presence in the building industry by supporting the Idaho Building Contractors Association (IBCA) and several of its local affiliates throughout Idaho Power s service area in The company participated in the Building Contractors Association of Southwestern Idaho (BCASWI) builder s expo and the Snake River Valley Building Contractors Association (SRVBCA) builder s expo. Idaho Power supported Parade of Homes events with full-page ENERGY STAR ads in the Parade of Homes magazines of the following BCAs: The Magic Valley Builders Association (MVBA), The BCASWI and the SRVBCA. The company also ran digital advertising on the SRVBCA app to increase customer engagement (Figure 35). Messages were added to residential customers billing statements in April and May informing them of Parade of Homes events in their area. A bill insert was sent to 370,775 Idaho customers and 12,109 Oregon customers in May to promote the program. These tactics allowed Idaho Power to better target potential participants. Figure 35. Digital ad on Snake River Valley Building Contractors Association app Page 93

102 Residential Sector Residential New Construction Pilot Program Idaho Power Company Cost-Effectiveness The RTF updated deemed savings numbers for new construction townhomes for Idaho and Montana in fall of The updated savings values now reflect Idaho building codes versus a weighted average of the region. The change resulted in an increase in average savings from 1,294 to 2,196 kwh/home. For more detailed information about the cost-effectiveness savings and assumptions, see Supplement 1: Cost-Effectiveness. In preparation for the program change, Idaho Power analyzed cost-effectiveness on four different potential home designs that would meet the new program specifications in Oregon and all four homes failed the TRC. The primary difficulty for cost-effectiveness in Oregon is the more stringent building codes that require more costly measures to reach the program s requirement of 20 percent more stringent than existing building code. The TRC s ranged between 0.37 and 0.64 while two of the four designs failed the UC test. Customer Satisfaction and Evaluations Independent, RESNET-certified program providers verified the rater s input for accuracy and confirmed that program requirements had been met. They also offered technical assistance to the raters who had contracted with them. At the completion of the project, the provider then classified each home as certified within the AXIS database. Per RESNET guidelines, the provider conducted QA on at least 10 percent of the related files, and a third-party conducted QA on at least 1 percent of the building sites. In 2017, the no QA issues were reported Program and Marketing Strategies After the program change in March 2018, the Residential New Construction Pilot Program will allow Idaho Power to claim savings based on each home s modeled energy savings, and will not require builders complete the ENERGY STAR certification process. Instead, raters will model energy savings and provide third-party verification for each project. The RTF and NEEA have created specific modeling requirements and program guidelines to ensure the program provides reliable energy savings for utilities across the Northwest. The program will continue to take advantage of the existing infrastructure of the regional AXIS database, and NEEA will provide raters with training, technical assistance, and QA reviews. Energy modeling must show that the energy savings of each home is at least 20 percent above Idaho s standard building codes. For the pilot, the other qualification remains the same a new home heated with electric heat pump technology and the incentive will increase to $1500. Because of likely cost-effectiveness issues, this pilot program will be available only in Idaho; Idaho Power plans to file to close the Oregon Tariff Schedule 77, ENERGY STAR Homes Northwest. The company will continue to analyze program results in Idaho and build relationships with builders in Oregon to determine the feasibility of offering the program in Oregon. Idaho Power plans to continue marketing efforts to promote this program to Idaho builders and new homebuyers. These marketing efforts include Parade of Homes ads in parade magazines for the Page 94

103 Idaho Power Company Residential Sector Residential New Construction Pilot Program BCASWI, SRVBCA, MVBA, and the Building Contractors Association of Southeast Idaho (BCASEI). A bill insert is planned for spring of The company also plans to continue supporting the general events and activities of the IBCA and its local affiliates. Social media and other advertising will be considered based on past effectiveness. Page 95

104 Residential Sector Shade Tree Project Idaho Power Company Shade Tree Project Participation and Savings Participants (trees) 2,711 2,070 Energy Savings (kwh) n/a n/a Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $194,695 $70,669 Oregon Energy Efficiency Rider $0 $0 Idaho Power Funds $1,122 $5,973 Total Program Costs All Sources $195,817 $76,642 Program Levelized Costs Utility Levelized Cost ($/kwh) n/a n/a Total Resource Levelized Cost ($/kwh) n/a n/a Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a n/a Total Resource Benefit/Cost Ratio n/a n/a Description The Shade Tree Project began as a pilot in According to the DOE, a well-placed shade tree can reduce energy used for summer cooling by 15 percent or more. Utility programs throughout the country report high customer satisfaction with shade tree programs and an enhanced public image for the utility related to sustainability and environmental stewardship. Other utilities report energy savings between 40 kwh per year (coastal climate San Diego) and over 200 kwh per year (Phoenix) per tree planted. To be successful, trees should be planted to maximize energy savings and ensure survivability. Two technological developments in urban forestry the state-sponsored Treasure Valley Urban Tree Canopy Assessment and the Arbor Day Foundation s Energy-Saving Trees tool provided Idaho Power with the information to facilitate a shade tree project. The Shade Tree Project operates in a small geographic area each spring and fall, offering free shade trees to residential customers. Participants enroll using the online Energy-Saving Trees tool and pick up their tree at specific events. Unclaimed trees are donated to cities and schools. Using the online enrollment tool, participants locate their home on a map, select from a list of available trees, and evaluate the potential energy savings associated with planting in different locations. During enrollment, participants learn how trees planted to the west and east save more energy over time than trees planted to the south and north. Ensuring the tree is planted properly helps it grow to provide maximum energy savings. At the tree pickup events, participants receive additional education on where to plant trees for maximum energy savings and other tree care guidance from experts. Local specialists include city arborists from participating municipalities; Idaho Power utility arborists; county master gardeners; and College of Western Idaho horticulture students. Page 96

105 Idaho Power Company Residential Sector Shade Tree Project Each August, Idaho Power sends participants from the previous two offerings a newsletter filled with reminders on proper tree care and links to resources, such as tree care classes and educational opportunities in the region. This newsletter was developed after the 2015 field audits identified common customer tree care questions and concerns. Program Activities In 2017, Idaho Power expanded the Shade Tree Project to include additional counties. In the spring, the project was open to customers in Ada, Canyon, Elmore, and Owyhee counties. In the fall, the project was open to customers in Ada, Canyon, Elmore, Gem, Payette, Owyhee, and Washington counties. Overall, Idaho Power distributed 2,711 trees to residential customers through the Shade Tree Project. Because the best time to plant shade trees is in the spring and fall, Idaho Power held offerings in April and October, with 1,307 trees and 1,404 trees distributed, respectively. Idaho Power purchased the trees from a local wholesale nursery in advance of each event. The species offered for each event depended on the trees available at the time of purchase. Idaho Power worked with city and state arborists to select a variety of large-growing, deciduous trees that traditionally grow well in the climate and soils of the participating counties. Participants picked up the trees at events throughout the project area four in the spring and four in the fall. Staging several pickup days, locations, and times helps maximize the number of trees picked up. In 2017, 90 percent of all trees were distributed to homeowners. Idaho Power continues to track the program data in the DSM database. The database is also used to screen applicants during enrollment to determine whether participants meet the eligibility requirements for the project, such as residential status within the eligible counties (customer type and location). In 2017, a US Forest Service Western Competitive States Grant paid for some of the trees and one tree field inspector over the summer. Idaho Power funded the remaining trees and the second tree field inspector. During the summer, Idaho Power repeated its audit component of the project and conducted follow-up site visits at a subset of participant homes. Participants were picked at random from the fall 2013 through the spring 2016 offerings to ensure trees would have had at least one full year in the ground prior to the evaluation. Two evaluators, a recent graduate from the CWI Horticulture program, and a Boise State University Environmental Sciences student, visited 469 homes and looked at 842 trees. For each tree, the field inspector measured the orientation to and distance from the home and recorded geographic positioning system (GPS) coordinates. This data will be used to refine energy-savings calculations. The students also recorded variables related to overall tree health. Results were used to identify opportunities to improve tree planting and care education materials and the overall program design. For example, Idaho Power used soil data to determine which tree species would be most likely to survive in each county, and offered those to customers in the fall. Marketing Activities For both offerings, Idaho Power developed a direct-mailing list using the state-sponsored Treasure Valley Urban Tree Canopy Assessment tool (tvcanopy.net). The tool is the result of a geographic information system (GIS)-based study that mapped land use throughout the Treasure Valley, including existing trees and vegetation, buildings, roads, waterways, and parking lots. The study Page 97

106 Residential Sector Shade Tree Project Idaho Power Company identified areas where a large-growing shade tree could be planted. Idaho Power used the tool to identify residential properties with potential planting sites to the west of the homes. For both offerings, Idaho Power also sent s to customers who had requested information about the project through Idaho Power s website. The cities of Nampa, Meridian, Boise, and Payette, shared information through their networks. Idaho Power announced its Shade Tree Project to allied groups, such as the Idaho Conservation League, Sierra Club, and Treasure Valley Canopy Network. The company also distributed program flyers at local events, where appropriate. A cloth poster served as a new addition to Idaho Power s educational material in The large poster was created to showcase what each tree would look like at full maturity and was a very useful reference piece for customers who had questions. In March, the program was featured in news segments on KPVI and KTVB. The program was also featured in News Scans. In fall 2017, a newsletter was sent to the last season s program participants. Articles discussed the expansion of the program to new locations and tips on how to keep trees healthy. The company also ran a social media post thanking cities, organizations, and volunteers who made each event a success. Cost-Effectiveness Idaho Power does not calculate the cost-effectiveness for this program since no savings are currently being attributed to this program. The company plans to begin counting energy saving for the Shade Tree Project when the originally planted trees are five years old. Customer Satisfaction and Evaluations After each offering, a survey was ed to participants. The survey asked questions related to program marketing, tree-planting education, and participant experience with the enrollment and tree pickup processes. Results are compared, offering to offering, to look for trends to ensure the program processes are still working, and to identify opportunities for improvement. Data are also collected about where and when the participant planted the tree. These data will be used by Idaho Power to refine energy-savings estimates. In total, the survey was sent to 1,532 Shade Tree Project participants. The company received 893 responses for a response rate of percent. Participants were asked how much they would agree or disagree that they would recommend the project to a friend; just over 97 percent of respondents said they strongly agree, and over 2 percent said they somewhat agree. Participants were asked how much they would agree or disagree that they were satisfied with the overall experience with the Shade Tree Project; over 94 percent of respondents indicated they strongly agree, and over 4 percent somewhat agree they were satisfied. View the complete survey results in Supplement 2: Evaluation Program and Marketing Strategies Idaho Power plans to continue the Shade Tree Project in 2018, expanding it to the Twin Falls area in the spring and returning to the Treasure Valley in the fall. The project will use the Arbor Day enrollment tool, and trees will be distributed at multiple events. Idaho Power will continue to market the program through direct-mail, focusing on customers identified using the Urban Tree-Canopy Assessment in the Treasure Valley. The program will be promoted in the April 2018 Home Energy Report sent to some Idaho Power customers. In addition, Idaho Power Page 98

107 Idaho Power Company Residential Sector Shade Tree Project maintains a waiting list of customers who were unable to enroll before previous offerings filled. Idaho Power will reach out to these customers through direct-mail or for the 2018 offerings. Idaho Power will continue to leverage allied interest groups, and will use social media and boosted Facebook posts if enrollment response rates decline. Page 99

108 Residential Sector Simple Steps, Smart Savings Idaho Power Company Simple Steps, Smart Savings Participation and Savings Participants (products) 12,556 7,880 Energy Savings (kwh) 900, ,320 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $185,354 $147,055 Oregon Energy Efficiency Rider $5,811 $3,535 Idaho Power Funds $456 $3,194 Total Program Costs All Sources $191,621 $153,784 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.020 $0.025 Total Resource Levelized Cost ($/kwh) $0.051 $0.063 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description Initiated in 2015, the Simple Steps, Smart Savings program is designed to increase sales of qualified energy-efficient appliances through promotion-based incentives. Incentives are shared among the retailer, manufacturer, and the customer, though they may differ among promotions and among retailers and manufacturers. Retailer and manufacturer incentives may be provided as co-marketing dollars to the retailer or manufacturer to fund activities such as promotional events, special product placement, point-of-purchase signage, retailer activities, event kits, sales associate training, training material, and other marketing activities during the promotional periods. Customer rewards may include, but are not limited to, retailer gift cards, free related products, or reduced pricing. Each promotion is available in Idaho and Oregon. Idaho Power also participates in the BPA-sponsored, Simple Steps, Smart Savings energy-efficient lighting program, which is discussed further in the Energy Efficient Lighting program section of this report. All Simple Steps, Smart Savings promotions are administered by the BPA and coordinated by a third-party contractor, CLEAResult. Program Activities In 2017, the qualified products included, select ENERGY STAR rated clothes washers and high-efficiency showerheads. The incentive provided by Idaho Power through this program for clothes washers was applied during special promotions, which aligned with holidays or events throughout the year at retail stores. The promotion for showerheads ran the entire year. Page 100

109 Idaho Power Company Residential Sector Simple Steps, Smart Savings Appliances In 2017, Idaho Power participated in five major Simple Steps, Smart Savings appliance promotions with these retailers: Sears, Sears Hometown, Dell s Home Appliance, and RC Willey. Dell s Appliances stopped participating after the Labor Day promotion due to low sales. At each event, CLEAResult personnel staffed a table and answered customer questions about the appliance promotion. To further educate customers about the promotions, CLEAResult created an Idaho Power-branded promotional landing page that highlights promotion details and participating retailers. The five promotions took place as follows: 1) the 2016 Black Friday promotion took place in November through the first week of December because the sales data were delayed, they will be included with the remaining four 2017 promotions; 2) the President s Day promotion ran for two weeks in February; 3) the Memorial Day promotion ran the last week in May through the first week in June; 4) the Independence Day promotion ran the last week in June through the first two weeks in July; and 5) the Labor Day promotion ran the last week in August through the first week in September. In-store events were held at all participating retailers in Idaho Power s service area during the promotions. Incentives for the purchase of an ENERGY STAR clothes washer included a $25 gift card at Sears, a $25 instant markdown at Sears Hometown, a gift of free laundry products at Dell s Home Appliances, and a $35 gift card at RC Willey. RC Willey added $10 to the $25 provided to allow them to offer a $35 gift card to customers. Showerheads In 2017, Idaho Power worked with 10 participating retailers on the high-efficiency showerhead promotion. There were 11,528 qualified showerhead sales. Of those sales, 12 percent were 1.50 gpm, 18 percent were 1.75 gpm, and 70 percent were 2.0 gpm showerheads. Marketing Activities To help support the appliance promotions, table tents and static clings were displayed on all qualifying appliances. These pieces informed customers about the promotion and the incentive they would receive. In-store gift cards were placed in gift card holders that displayed the Idaho Power logo. For purchases from Sears Hometown, where the customer received an instant markdown, customers also received a thank-you card with the Idaho Power logo. Additionally, CLEAResult field support staffed a table at 20 appliance promotion events to educate customers and sales staff of the Idaho Power incentives. Several Simple Steps, Smart Savings promotions were conducted through CLEAResult at retail stores in These promotions generally involved special product placement and signs. CLEAResult staff continued to conduct monthly store visits in 2017 to check on stock, point-of-purchase signs, and displays. During the promotions, Idaho Power placed Facebook and Twitter posts to notify customers of the details. Idaho Power also began providing information about the appliance promotions on its redesigned website in late Page 101

110 Residential Sector Simple Steps, Smart Savings Idaho Power Company Cost-Effectiveness In late 2015, RTF reviewed and updated the savings assumptions for showerheads. The parameters that impacted the savings for showerheads the most were changes to the baseline showerhead, the showers per person per year, and the annual usage of each showerhead. Due to the timing of RTF s update, BPA and CLEAResult implemented the new savings in the Simple Steps, Smart Savings promotion in In late 2016, RTF reviewed and updated the savings assumptions for showerheads. BPA and CLEAResult will implement these new saving in In 2017, Idaho Power participated in five clothes washer promotions. Idaho Power applied the per-unit savings from the approved BPA s unit energy savings (UES) Measure List. While BPA applies the annual generator busbar savings of 109 kwh per unit, Idaho Power applies the annual site savings of 101 kwh per unit. This difference is due to the different line losses applied by Idaho Power and BPA. For the NEBs, Idaho Power used RTF s clothes washer workbook to determine the water and wastewater savings for the ENERGY STAR clothes washers. For detailed information for all measures within the Simple Steps, Smart Savings program, see Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations Idaho Power conducted no customer satisfaction surveys or program evaluations in Program and Marketing Strategies Idaho Power has committed to participate in the 2018 Simple Steps, Smart Savings appliance promotions. Five promotions are scheduled: 1) February for President s Day, 2) May to June for Memorial Day, 3) July for Independence Day, 4) August to September for Labor Day, and 5) November to December for Black Friday. Current participating retailers are Sears, Sears Hometown, and RC Willey. Idaho Power and CLEAResult are in the process of contacting additional retailers to see if there s any interest in participating in the promotion. For each promotion, Idaho Power will provide incentives only for products that meet Idaho Power s cost-effectiveness requirements. Idaho Power will also continue participation in the Simple Steps, Smart Savings energy-efficient showerheads buy-down program in CLEAResult will continue to manage marketing at retailers, including point-of-purchase signs, Idaho Power-branded gift card holders, and thank-you cards. Idaho Power will notify customers of the promotions on its website, Facebook, and Twitter pages. Page 102

111 Idaho Power Company Residential Sector Weatherization Assistance for Qualified Customers Weatherization Assistance for Qualified Customers Participation and Savings Participants (homes/non-profits) Energy Savings (kwh) 669, ,162 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $0 $0 Oregon Energy Efficiency Rider $0 $0 Idaho Power Funds $1,307,485 $1,289,809 Total Program Costs All Sources $1,307,485 $1,289,809 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.111 $0.105 Total Resource Levelized Cost ($/kwh) $0.152 $0.158 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio Description The WAQC program provides financial assistance to regional CAP agencies in Idaho Power s service area. This assistance helps fund weatherization costs of electrically heated homes occupied by qualified customers who have limited incomes. The WAQC program also provides a limited pool of funds for the weatherization of buildings occupied by non-profit organizations serving primarily special-needs populations, regardless of heating source, with priority given to buildings with electric heat. Weatherization improvements enable residents to maintain a more comfortable, safe, and energy-efficient home while reducing their monthly electricity consumption. Improvements are available at no cost to qualified customers who own or rent their homes. These customers also receive educational materials and ideas on using energy wisely in their homes. Local CAP agencies determine participant eligibility according to federal and state guidelines. In 1989, Idaho Power began offering weatherization assistance in conjunction with the State of Idaho Weatherization Assistance Program (WAP). In Oregon, Idaho Power offers weatherization assistance in conjunction with the State of Oregon WAP. Through the WAQC program, Idaho Power provides supplementary funding to state-designated CAP agencies for additional weatherization of electrically heated homes occupied by qualified customers and buildings occupied by non-profit organizations that serve special-needs populations. This allows CAP agencies to combine Idaho Power funds with federal LIHEAP weatherization funds to serve more customers with special needs in electrically heated homes. Idaho Power has an agreement with each CAP agency for the WAQC program that specifies the funding allotment, billing requirements, and program guidelines. Currently, Idaho Power oversees the program in Idaho through five regional CAP agencies: Eastern Idaho Community Action Partnership (EICAP), El Ada Community Action Partnership (EL ADA), Metro Community Services (MCS), South Central Community Action Partnership (SCCAP), and Southeastern Idaho Community Action Agency Page 103

112 Residential Sector Weatherization Assistance for Qualified Customers Idaho Power Company (SEICAA). In Oregon, Community Connection of Northeast Oregon, Inc. (CCNO), and Community in Action (CINA) provide weatherization services for qualified customers in Idaho Power s service area. The Idaho Department of Health and Welfare (IDHW) uses the energy audit program (EA5) for the Idaho WAP and, therefore, the Idaho CAP agencies use the EA5. The EA5 is a software program approved for use by the DOE. Annually, Idaho Power physically verifies approximately 10 percent of the homes that were weatherized under the WAQC program. This is done through two methods. The first method includes the Idaho Power program specialist participating in Idaho s and Oregon s state monitoring process that reviews weatherized homes. The process involves utility representatives; weatherization personnel from the CAP agencies; CAPAI; and a Building Performance Institute (BPI)-certified quality control inspector hired by the state reviewing homes weatherized by each of the CAP agencies. The second method involves Idaho Power contracting with two companies The Energy Auditor, Inc. (The Energy Auditor), and Momentum, LLC (Momentum) that employ certified building performance specialists to verify installed measures in customer homes. The Energy Auditor verifies homes weatherized for the WAQC program in Idaho Power s eastern and southern Idaho regions. The owner of The Energy Auditor is certified by PTCS and is an ENERGY STAR home-performance specialist. Momentum verifies weatherization services provided through the WAQC program in the Capital and Canyon West regions of Idaho and in the company s Oregon service area. The owner of Momentum is a RESNET certified home energy rater. After these companies verify installed measures, any required follow-up is done by the CAP agency personnel. Program Activities Idaho Power reports the activities related to the WAQC program in compliance with IPUC Order No , as updated in Case No. IPC-E-16-30, Order No This order approved Idaho Power s request to modify Order No to consolidate the WAQC Annual Report with the DSM Annual Report. This report includes the following required topics: Review of weatherized homes and non-profit buildings by county Review of measures installed Overall cost-effectiveness Customer education and satisfaction Plans for 2018 Weatherized Homes and Non-Profit Buildings by County In 2017, Idaho Power made $1,277,035 available to Idaho CAP agencies. Of the funds provided, $1,174,197 were paid to Idaho CAP agencies in 2017, while $104,602 were accrued for future funding. Of the funds paid in 2017, $1,032,765 directly funded audits, energy efficiency measures, and health and safety measures for qualified customers homes (production costs) in Idaho, and $103,273 funded administration costs to Idaho CAP agencies for those homes weatherized. Page 104

113 Idaho Power Company Residential Sector Weatherization Assistance for Qualified Customers These funds provided for the weatherization of 194 Idaho homes and two Idaho non-profit buildings. The production cost of the non-profit building weatherization measures was $34,690, while $3,469 in administrative costs were paid for the Idaho non-profit building weatherization jobs. In Oregon, Idaho Power paid $31,884 in production costs for seven qualified homes and $3,188 in CAP agency administrative costs for homes in Malheur County. Table 9 shows each CAP agency, the number of homes weatherized, production costs, the average cost per home, administration payments, and total payments per county made by Idaho Power. Table WAQC activities and Idaho Power expenditures by agency and county Agency/County Number of Homes Production Cost Average Cost Administration Payment to Agency Total Payment Idaho Homes EICAP Lemhi 3 $ 11,629 $ $ 1,159 12,788 Agency Total 3 $ 11,629 $ 3,876 $ 1,159 $ 12,788 EL ADA Ada ,146 5,669 37, ,561 Elmore 10 63,008 6,301 6,301 69,309 Owyhee 16 79,645 4,978 7,964 87,609 Agency Total 92 $ 516,799 $ 51,680 $ 568,479 Metro Community Services Boise 1 5,578 5, ,135 Canyon ,528 5,373 25, ,781 Gem 1 6,684 6, ,352 Payette 1 4,629 4, ,092 Washington 1 7,202 7, ,922 Agency Total 51 $ 276,621 $ 27,662 $ 304,283 SCCAP Camas 1 18,027 18,027 1,803 19,830 Cassia 1 2,262 2, ,488 Gooding 3 22,112 7,371 2,211 24,323 Jerome 2 7,495 3, ,245 Lincoln 2 10,344 5,172 1,034 11,378 Twin Falls 12 73,175 6,098 7,318 80,493 Agency Total 21 $ 133,415 $ 13,341 $ 146,756 SEICAA Bannock 9 25,623 2,847 2,562 28,185 Bingham 14 51,988 3,713 5,199 57,187 Power 4 16,691 4,173 1,669 18,360 Agency Total 27 $ 94,302 $ 9,430 $ 103,732 Total Idaho Homes 194 $ 1,032,765 $ 5,324 $ 103,273 $ 1,136,038 Non-Profit Buildings Jerome 1 13,962 13,962 1,396 15,359 Owyhee 1 20,728 20,728 2,073 22,800 Total Non-Profit Buildings 2 $ 34,690 $ 34,690 $ 3,469 $ 38,159 Oregon Homes CCNO Page 105

114 Residential Sector Weatherization Assistance for Qualified Customers Idaho Power Company Agency/County Number of Homes Production Cost Average Cost Administration Payment to Agency Total Payment Baker Agency Total 0 $ 0 $ 0 $ 0 CINA Malheur 7 31,884 4,555 3,188 Agency Total 7 $ 31,884 $ 3,188 $ 35,073 Total Oregon Homes 7 $ 31,884 $ 4,555 $ 3,188 $ 35,073 Total Program 203 $ 1,099,340 $ $ 109,930 $ 1,209,270 Note: Dollars are rounded. The base funding for Idaho CAP agencies is $1,212,534 annually, which does not include carryover from the previous year. Idaho Power s agreements with CAP agencies include a provision that identifies a maximum annual average cost per home up to a dollar amount specified in the agreement between the CAP agency and Idaho Power. The intent of the maximum annual average cost allows the CAP agency flexibility to service some homes with greater or fewer weatherization needs. It also provides a monitoring tool for Idaho Power to forecast year-end outcomes. The average cost per home weatherized is calculated by dividing the total annual Idaho Power production cost of homes weatherized by the total number of homes weatherized that the CAP agencies billed to Idaho Power during the year. The maximum annual average cost per home the CAP agencies were allowed under the 2017 agreement was $6,000. In 2017, Idaho CAP agencies had a combined average cost per home weatherized of $5,324. In Oregon, the average was $4,555 per home weatherized. There is no maximum annual average cost for the weatherization of buildings occupied by non-profit agencies. CAP agency administration fees are equal to 10 percent of Idaho Power s per-job production costs. The average administration cost paid to agencies per Idaho home weatherized in 2017 was $532, and the average administration cost paid to Oregon agencies per Oregon home weatherized during the same period was $455. Not included in this report s tables are additional Idaho Power staff labor, marketing, home verification, and support costs for the WAQC program totaling $58,114 for These expenses were in addition to the WAQC program funding requirements in Idaho specified in IPUC Order No In compliance with IPUC Order No , WAQC program funds are tracked separately, with unspent funds carried over and made available to Idaho CAP agencies in the following year. In 2017, $64,501 in unspent funds from 2016 were made available for expenditures in Idaho. Table 10 details the funding base and available funds from 2016 and the total amount of 2017 spending. Page 106

115 Idaho Power Company Residential Sector Weatherization Assistance for Qualified Customers Table WAQC base funding and funds made available Idaho Agency 2017 Base Available Funds from 2016 Total 2017 Allotment 2017 Spending EICAP $ 12,788 $ 0 $ 12,788 $ 12,788 EL ADA 568, , ,479 Metro Community Services 302, , ,283 SCCAP 167,405 49, , ,756 SEICAA 111, , ,732 Non-profit buildings 50,000 14,493 64,493 38,159 Idaho Total $ 1,212,534 $ 64,501 $ 1,277,035 $ 1,174,197 Note: Dollars are rounded. Overspending of Metro Community Services in 2017 will be deducted from 2018 Metro Community Services funding. Weatherization Measures Installed Table 11 details home and non-profit building counts for which Idaho Power paid all or a portion of each measure cost during The home counts column shows the number of times any percentage of that measure was billed to Idaho Power during the year. If totaled, measure counts would be higher than total homes weatherized because the number of measures installed in each home varies. WAQC and other state Weatherization Assistance Programs nationwide are whole-house programs that offer several measures that have costs but do not necessarily save energy, or for which the savings cannot be measured. Included in this category, as required by DOE, are health and safety measures and home energy audits. Health and safety measures are necessary to ensure weatherization activities do not cause unsafe situations in a customer s home or compromise a home s existing indoor air quality. Idaho Power contributes funding for the installation of non-energy saving items such as smoke and carbon monoxide detectors, vapor barrier, electric panel upgrades, floor registers, boots, and venting of bath, laundry, and kitchen range fans. While these items increase health, safety, and comfort and are required for certain energy-saving measures to work properly, they increase costs of the job. Page 107

116 Residential Sector Weatherization Assistance for Qualified Customers Idaho Power Company Table WAQC review of measures installed Home Counts Production Costs Idaho Homes Audit 135 $ 15,840 Ceiling Insulation 72 61,219 CFLs 45 1,314 Doors 93 72,118 Ducts 36 18,706 Floor Insulation 58 66,123 Furnace Repair 4 3,662 Furnace Replace ,840 Health and Safety 24 7,021 Infiltration ,843 Other 22 20,136 Pipes 25 2,113 Vents 14 1,156 Wall Insulation 7 1,545 Water Heater 2 2,975 Windows ,154 Total Idaho Homes $ 1,032,765 Oregon Homes Ceiling Insulation 2 2,801 Ducts 4 1,484 Floor Insulation 4 14,876 Health and Safety 3 1,524 Infiltration 6 2,235 Windows 2 8,964 Total Oregon Homes $ 31,884 Idaho Non-Profits Audit 2 $829 Ceiling Insulation 2 18,498 CFLs 1 16 Ducts Furnace Replace 1 11,963 Health and Safety Other 1 40 Pipes 1 15 Vents Wall Insulation Windows 1 2,390 Total Idaho Non-Profit Measures $ 34,690 Note: Dollars are rounded. Marketing Activities Idaho Power provided educational materials to each CAP agency to help qualified customers who receive weatherization assistance learn how to use energy efficiently. Included in the materials were Page 108

117 Idaho Power Company Residential Sector Weatherization Assistance for Qualified Customers copies of the Idaho Power publications: Energy Efficiency Guide and Energy Saving Tips, which describe energy conservation tips for the heating and cooling seasons and saving water, and the energysaving benefits of using CFLs and LEDs, including tips for choosing the right lightbulb. Idaho Power developed and distributed a brochure that provided information about both the WAQC program and Weatherization Solutions for Eligible Customers program. This was meant to help customers realize there is more than one way to qualify for weatherization services. Idaho Power actively informed customers about WAQC through energy and resource fairs and other customer contacts, including communication from its Customer Service Center. Cost-Effectiveness The WAQC program is not cost-effective. The program had a total UC B/C ratio of 0.37, and a TRC B/C ratio of Cost-effectiveness ratios declined significantly due to declines in the DSM Alternate costs of 24 percent between the 2013 and 2015 IRPs and adjustments to the savings load shape even while there was no change in per-home average savings and the program s overall cost structure between 2016 and In 2017, Idaho Power began using the load shape for WAQC analysis that was used for electric space heating in Idaho Power s 2015 and 2017 potential studies. The load shapes reflect the time periods of the energy savings end uses. The load shape change reduced the value of savings allocated to summer months and better aligns with the electric heat nature of the program savings. Table 12 shows the updated results that identify the difference between homes that received weatherization only versus homes that were weatherized and upgraded with an efficient heat pump. Table savings values for WAQC program Weatherization and heating Weatherization only system change Home Type kwh/project kwh/ft 2 kwh/project kwh/ft 2 Single-family Homes... 1, , Manufactured Homes... 1, , Multi-family Homes... n/a 1.16 n/a 2.48 Non-profit Buildings... n/a 1.16 n/a 2.48 Table 12 lists the various average per-project savings values used to estimate savings in There were no changes to the values used for reporting between 2016 and The savings values were updated in 2016 to better align savings by home type and measures installed with the associated installation costs. Per-home savings values will be updated in 2018 using 2015 through 2016 weatherization projects to keep savings in line with home sizes and measure bundles that the agencies are installing. The initial phase for assessing cost-effectiveness occurs during the initial contacts between CAP agency weatherization staff and the customer. In customer homes, the agency weatherization auditor uses the EA5 to conduct the initial audit of potential energy savings for a home. The EA5 compares the efficiency of the home prior to weatherization to the efficiency after the proposed improvements and calculates the value of the efficiency change into a savings-to-investment ratio (SIR). The output of the SIR is similar to the PCT ratio. If the EA5 computes an SIR of 1.0 or higher, the CAP agency is Page 109

118 Residential Sector Weatherization Assistance for Qualified Customers Idaho Power Company authorized to complete the proposed measures. The weatherization manager can split individual measure costs between Idaho Power and other funding sources with a maximum charge of 85 percent of total production costs to Idaho Power. Using the audit form to pre-screen projects ensures each weatherization project will result in energy savings. The use of the audit tool is one of the primary reasons that consistent results have been seen from recent billing analysis of weatherization projects. The 2017 cost-effectiveness analysis continues to incorporate the following directives from IPUC Order No : Applying a 100-percent net-to-gross (NTG) value to reflect the likelihood that WAQC weatherization projects would not be initiated without the presence of a program Claiming 100 percent of project savings Including an allocated portion of the indirect overhead costs Applying the 10-percent conservation preference adder Claiming $1 of benefits for each dollar invested in health, safety, and repair measures Amortizing evaluation expenses over a three-year period Customer Education and Satisfaction The CAP agency weatherization auditor explains which measures are analyzed and why. Further education is done during weatherization as the crew demonstrates the upgrades and how they will help save energy and provide an increase in comfort. Idaho Power provides each CAP agency with energy efficiency guides and energy savings tips for distribution during home visits. Any customers whose homes are selected for post-weatherization home verification receive additional information and have the opportunity to ask the home verifiers more questions. Idaho Power used independent, third-party verification companies to ensure the stated measures were installed in the homes, and to discuss the program with these customers. In 2017, home verifiers randomly selected and visited 27 homes, requesting feedback about the program. When asked how much customers learned about saving electricity, 18 customers answered they learned a lot or some. When asked how many ways they tried to save electricity, 24 customers responded a lot or some. A customer survey was used to assess major indicators of customer satisfaction throughout the service area. The 2017 Weatherization Programs Customer Survey was provided to all program participants in all regions upon completion of weatherization in their homes. Survey questions gathered information about how customers learned of the program, reasons for participating, how much customers learned about saving energy in their homes, and the likelihood of household members changing behaviors to use energy wisely. Idaho Power received survey results from 169 of 201 households weatherized by the program in Of the 169 completed surveys, 165 were from Idaho customers and four were from Oregon customers. Some highlights include the following: Page 110

119 Idaho Power Company Residential Sector Weatherization Assistance for Qualified Customers Over 42 percent of respondents learned of the program from a friend or relative, and another almost 22 percent learned of the program from an agency flyer. Nearly 10 percent learned about the weatherization program from direct-mail. Over 77 percent of the respondents reported that their primary reason for participating in the weatherization program was to reduce utility bills, and over 38 percent wanted to improve the comfort of their home. Over 81 percent reported they learned how air leaks affect energy usage, and just over 63 percent indicated they learned how insulation affects energy usage during the weatherization process. Over 55 percent of respondents said they learned how to use energy wisely. Eighty percent reported they were very likely to change habits to save energy, and almost 73 percent reported they have shared all of the information about energy use with members of their household. Over 93 percent of the respondents reported they think the weatherization they received will significantly affect the comfort of their home, and almost 97 percent said they were very satisfied with the program. Over 84 percent of the respondents reported the habit they were most likely to change was turning off lights when not in use, and 69 percent said that washing full loads of clothes was a habit they were likely to adopt to save energy. Turning the thermostat up in the summer was reported by over 56 percent of the respondents, and turning the thermostat down in the winter was reported by 62 percent as a habit they and members of the household were most likely to adopt to save energy. A summary of the survey is included in Supplement 2: Evaluation Program and Marketing Strategies As in previous years, unless directed otherwise, Idaho Power will continue to provide financial assistance to CAP agencies while exploring changes to improve program delivery. The company will continue to provide the most benefit possible to special-needs customers while working with Idaho and Oregon WAP personnel. Idaho Power will continue to participate in the Idaho and Oregon state monitoring process of weatherized homes and will continue to verify approximately 10 percent of the homes weatherized under the WAQC program via certified home-verification companies. In 2018, Idaho Power will support the whole-house philosophy of the WAQC program and Idaho and Oregon WAP by continuing to allow a $6,000 annual maximum average per-home cost. Based on the required funding, Idaho Power estimates approximately 187 homes and four non-profit buildings in Idaho will be weatherized, and approximately 11 homes in Oregon will be weatherized in In Idaho during 2018, Idaho Power expects to contribute the base amount plus available funds from 2017 to total approximately $1,360,000 in weatherization measures and agency administration fees. Of this amount, approximately $76,300 will be provided to the non-profit pooled fund to weatherize buildings housing non-profit agencies that primarily serve qualified customers in Idaho. Page 111

120 Residential Sector Weatherization Solutions for Eligible Customers Idaho Power Company Weatherization Solutions for Eligible Customers Participation and Savings Participants (homes) Energy Savings (kwh) 604, ,653 Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $1,137,209 $1,226,540 Oregon Energy Efficiency Rider $(56,571) * $56,571 * Idaho Power Funds $28,224 $40,681 Total Program Costs All Sources $1,108,862 $1,323,793 Program Levelized Costs Utility Levelized Cost ($/kwh) $0.115 $0.130 Total Resource Levelized Cost ($/kwh) $0.117 $0.130 Benefit/Cost Ratios Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio * Oregon Rider charges were reversed and charged to the Idaho Rider in February 2017 Description Weatherization Solutions for Eligible Customers is an energy efficiency program designed to serve Idaho Power residential customers in Idaho whose income falls between 175 percent and 250 percent of the most current federal poverty level. Initiated in 2008, the program is designed to mirror the WAQC program. These customers often do not have disposable income to participate in other residential energy efficiency programs, and they typically live in similar housing as WAQC customers. The Weatherization Solutions program also benefits certain customers on the WAQC waiting list. When customer income overlaps both programs, an earlier weatherization date may be available through this program than WAQC providing less wait time for the customer and energy savings sooner. Potential participants are interviewed by a participating contractor to determine household occupant income eligibility, as well as to confirm the home is electrically heated. If the home is a rental, the landlord must agree to maintain the unit s current rent for a minimum of one year, and to help fund a portion of the cost of weatherization. If the customer is eligible, an auditor inspects the home to determine which upgrades will save energy, improve indoor air quality, and/or provide health and safety for the residents. To be approved, energy efficiency measures and repairs must have an SIR of 1.0 or higher, interact with an energy-saving measure, or be necessary for the health and safety of the occupants. The Weatherization Solutions for Eligible Customers program uses a home audit tool called the HAT14.1 which is similar to the EA5 audit tool used in WAQC. The home is audited for energy efficiency measures and the auditor proposes upgrades based on the SIR ratio calculated by HAT14.1. As in WAQC, if the SIR is 1.0 or greater, the contractor is authorized to upgrade that measure. Measures considered for improvement are window and door replacement; ceiling, floor and wall insulation; Page 112

121 Idaho Power Company Residential Sector Weatherization Solutions for Eligible Customers HVAC repair and replacement; water heater repair and replacement; and pipe wrap. Also included is the potential to replace lightbulbs and refrigerators. Contractors invoice Idaho Power for the project costs, and if the home is a rental, a minimum landlord payment of 10 percent of the cost is required. Idaho Power s agreement with contractors includes a provision that identifies a maximum annual average cost per home for the program. The intent of the maximum annual average cost is to allow contractors the flexibility to service homes with greater or fewer weatherization needs. It also provides a monitoring tool for Idaho Power to forecast year-end outcomes. Program Activities In 2017, contractors weatherized 164 Idaho homes for the program: 16 in eastern Idaho by Savings Around Power; 70 in Idaho Power s Canyon West Region by Metro Contractors Services, LLC.; 60 in south-central Idaho by Home Energy Management, LLC (HEM-LLC); and 18 in the company s Capital Region by Power Savers. Of those 164 homes weatherized, 133 were single-family and manufactured homes, and 31 were low-income multi-family apartments where LED lightbulbs, showerheads, kitchen and bath sink aerators, indoor clotheslines, and smoke detectors were installed. Marketing Activities The company used a variety of tactics to reach customers in income-eligible electrically heated homes. In February, a bill insert was sent to 362,805 customers in Idaho and another was mailed to 345,278 in October. The program was promoted at events targeting people with limited incomes, including seniors. Ads and articles promoted the program in the Senior BlueBook, Blackfoot Morning News boomers edition, Idaho State Journal, Idaho Statesman, Power County Press and Aberdeen Times, Recorder Herald, and Sho-Ban News. A flyer promoting the program was placed in giveaway bags at the Idaho Senior games in the Eastern Region. The program was also mentioned in the March 6 edition of News Scans. Weatherization brochures were updated in The company ran a boosted social media post in July, resulting in 1,092 link clicks and reaching nearly 28,000 people (Figure 36). Another boosted post ran in December and garnered increased online engagement. The post had 1,447 link clicks and reached nearly 33,000 users. Weatherization tips were also mentioned in various social media posts. Page 113

122 Residential Sector Weatherization Solutions for Eligible Customers Idaho Power Company Figure 36. Social media post for Weatherization Solutions for Eligible Customers program Idaho Power s community relations representatives and customer representatives promoted the program at meetings in their communities. The program specialist and customer representatives promoted the program to home healthcare provider groups, religious groups, and members of the Idaho Nonprofit Center. Customer representatives used updated brochures (in English and Spanish) that included current income qualifications and location-specific contractor information. The program was also promoted at county and resource fairs and was cross marketed with other residential energy efficiency programs, such as Home Energy Audit. Cost-Effectiveness Benefit-cost ratios declined in 2017, and the Weatherization Solutions for Eligible Customers program remains not cost-effective. The 2017 program total UC B/C ratio is 0.34, and a TRC B/C ratio is Cost-effectiveness declined because of change in load shapes used to match energy savings with their associated annual value and also a drop in the DSM Alternate costs by transitioning from the 2013 to 2015 IRPs for 2017 program planning. The drop occurred while there were no changes in per-home savings nor dramatic changes in program cost structure. Weatherization Solutions for Eligible Customers projects, similar to WAQC program guidelines, benefit from a pre-screening of measures through a home audit process. The home audit process ensures there is an adequate number of kwh savings to justify the project and provides more consistent savings for billing analysis. See WAQC cost-effectiveness for a discussion of the audit and prescreening process, which is similar for both programs. Page 114

123 Idaho Power Company Residential Sector Weatherization Solutions for Eligible Customers For further details on the overall program cost-effectiveness assumptions, see Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations A 2017 customer survey was provided to all program participants upon completion of weatherization in their homes. Survey questions gathered information about how customers learned of the program, reasons for participating, the amount of information customers learned about saving energy in their homes, and the likelihood that household members would change their behavior to use energy wisely. Additionally, demographic information was gathered to determine future marketing strategies. Idaho Power received survey results from 139 of the 164 households weatherized by the program in Key highlights include the following: Almost 22 percent of respondents learned of the program through a letter in the mail, and another 17 percent learned of the program from a friend or relative. Over 79 percent of the respondents reported their primary reason for participating in the weatherization program was to reduce utility bills. Almost 62 percent indicated they learned how insulation affects energy usage during the weatherization process, and over 80 percent reported they learned how air leaks affect energy usage. Another almost 63 percent of respondents said they learned how to use energy wisely. Over 78 percent reported they were very likely to change habits to save energy, and over 66 percent reported they have shared all of the information about energy use with members of their household. Over 78 percent of the respondents reported they think the weatherization they received will significantly affect the comfort of their home, and nearly 93 percent said they were very satisfied with the program. A summary of the report is included in Supplement 2: Evaluation. Two independent companies performed random verifications of weatherized homes and visited with customers about the program. In 2017, 36 homes were verified, and 26 (72 percent), of those customers reported they learned a lot or some about saving electricity in their home. Another 25 customers (69 percent) reported they had tried a lot or some ways to save energy in their home Program and Marketing Strategies Idaho Power will update brochures as necessary to help spread the word about the program in all communities. Additional marketing for the program will include bill inserts and advertisements in various regional publications, particularly those with a senior and low-income focus. Social media ads and boosts will be considered to target specific regions to increase and maintain program awareness. Regional marketing will also be based on need as evident by any regional contractor s waiting list for Weatherization Solutions services. The program will again be promoted at county fairs, home shows, and resource fairs, as needed. Page 115

124 Commercial/Industrial Sector Overview Idaho Power Company Commercial/Industrial Sector Overview Idaho Power s commercial sector consists of over 70,400 commercial, governmental, school, and small-business customers. In 2017, the commercial sector s number of customers increased by 1,067, an increase of 1.5 percent from The energy usage of commercial customers varies from a few kwh each month to several hundred thousand kwh per month. The commercial sector represents 28 percent of Idaho Power s actual total electricity sales. The industrial and special contracts customers are Idaho Power s largest individual energy consumers. There are 119 Rate 19 and special contract industrial customers. These customers account for approximately 23 percent of Idaho Power s total electricity sales. The 2017 season was the third year of the internally managed Flex Peak Program, a demand response program designed to reduce the demand on Idaho Power s system during periods of extreme peak electricity use. Program results were similar to the 2016 season, and met the overall goal of 35 MW. The program included 65 participants at 141 sites. Idaho Power also offers the statutory-required Oregon Commercial Audits program to medium and small commercial customers. Table commercial/industrial program summary Total Cost Savings Program Participants Utility Resource Energy (kwh) Demand (MW) Demand Response Flex Peak Program sites $ 658,156 $ 658,156 n/a 36 Total... $ 658,156 $ 658, Energy Efficiency Custom Projects projects $ 8,679,919 $ 17,279,117 44,765,354 Green Motors Industrial projects 143,976 New Construction projects 2,433,596 4,265,056 17,353,820 Retrofits... 1,137 projects 4,343,835 12,500,303 23,161,877 Total... $ 15,457,351 $ 34,044,477 85,425,027 Note: See Appendix 3 for notes on methodology and column definitions. Customer Satisfaction and Evaluations Customer satisfaction research by sector includes the Idaho Power quarterly customer relationship surveys that ask questions about customer perceptions related to Idaho Power s energy efficiency programs. Page 116

125 Idaho Power Company Commercial/Industrial Sector Overview Table customer satisfaction related to C&I sector programs Customer Measurements Percent meeting or exceeding their needs Large-Commercial and Industrial Customer Responses Small-Business In offering energy efficiency programs... 67% 53% With information on how to use energy wisely and efficiently... 57% 61% By encouraging energy efficiency with its customers... 69% 65% Percent indicated they have participated in at least one Idaho Power energy efficiency program... 75% 25% Of the customers who participated in at least one program, the percent that are "very" or "somewhat" satisfied... 92% 91% Training and Education Technical training and education continue to be important in helping Idaho Power customers identify where they may have energy efficiency opportunities within their facilities. These activities increase awareness and participation in existing energy efficiency and demand response programs, and enhance customer satisfaction regarding the company s energy efficiency activities. Educating customers requires working with and supporting multiple stakeholders and organizations. Examples of key stakeholders include the Integrated Design Lab (IDL), BOMA, US Green Building Council (USGBC), ASHRAE, and Educating customers requires working with and supporting multiple stakeholders and organizations. Examples of key stakeholders include the Integrated Design Lab (IDL), BOMA, USGBC, ASHRAE, and International Building Operators Association (IBOA). Through funding provided by Idaho Power, the IDL performed several tasks aimed at increasing the energy efficiency knowledge of architects, engineers, trade allies, and customers. Specific activities included sponsoring a Building Simulation Users Group (BSUG), conducting Lunch & Learn sessions held at various design and engineering firms, and offering a Tool Loan Library (TLL). Idaho Power also used two newsletters to educate and inform customers about energy efficiency. Energy@Work was mailed to customers twice in 2017; the major customer representatives ed Energy Insights to 460 of Idaho Power s largest commercial and industrial customers each quarter. Idaho Power delivered 10 technical classroom-based training sessions in Of the 10 sessions, one was a three-day class Refrigerating Engineers and Technical Association, Certified Refrigeration Energy Specialist Training (RETA-CRES), one class was presented twice in two different locations (Boise and Twin Falls), and the others were one-day classes. Topics included the following: Introduction to Unitary Air Conditioning Systems Advanced Unitary Air Conditioning Systems Commercial and Industrial Motor Efficiency Variable Frequency Drives and Energy Efficiency Compressed Air Challenge Level I (conducted in collaboration with United Electric) Page 117

126 Commercial/Industrial Sector Overview Idaho Power Company Energy Efficiency of Chilled Water Systems Energy Efficiency of Cooling Towers Commercial and Industrial Energy Efficient Lighting Systems (Boise) Commercial and Industrial Energy Efficient Lighting Systems (Twin Falls) RETA-CRES (conducted in collaboration with NEEA) A schedule of training events is posted on Idaho Power s website and marketed through the newsletters Energy@Work and Energy Insights. Major customer representatives and program energy efficiency engineers distribute electronic training announcements to their contact lists. Commercial and Industrial Energy Efficiency personnel or the major customer representatives also give an overview of the commercial and industrial programs during each technical training session offered to customers. The level of participation in 2017 remained high, with 302 attendees. Customer feedback indicated the average satisfaction level was 93 percent. Idaho Power s average cost to deliver trainings in 2017 was approximately $3,925 per class. Idaho Power posted prior years webinar recordings and related PDFs on the company s commercial and industrial training webpage, along with a listing of all IBOA events. Idaho Power covered at least 50 percent of the cost for Idaho Power customers to take part in their educational classes including the Building Operator Certification Level 1, consisting of eight day-long classes, and Level 2, consisting of seven day-long classes. In 2017, 30 Idaho Power customers attended the Level 1 classes. The Level 2 classes were not held in 2017, but are planned for Field Staff Activities Idaho Power field staff are on site with customers each day. The field staff uses a variety of Idaho Power-developed programs, tools, and services to help customers with their energy-related questions and challenges. The customer representatives and major customer representatives have specific goals related to proactive activities, such as a specific number of visits or projects, designed to engage customers in the energy efficiency programs. Additionally, program specialists and engineers work closely with customer representatives and major customer representatives to use their established relationships with customers. Customer representatives and major customer representatives distribute informational materials to trade allies and other market participants who, in turn, support and promote Idaho Power s energy efficiency programs. Customers regularly ask how to get the most out of their energy dollar. Idaho Power staff has been trained to properly advise customers in the wise use of energy-specific energy efficiency measures and, when needed, can recommend where to find answers. Idaho Power is equipped with experienced engineers, technically proficient personnel, and an extensive network of nationally recognized organizations, contacts at neighboring western electrical utilities, and energy efficiency clearing houses to handle energy-related questions. Page 118

127 Idaho Power Company Commercial/Industrial Sector C&I Energy Efficiency Program Commercial and Industrial Energy Efficiency Program Participation and Savings Program Costs by Funding Source Program Levelized Costs Benefit/Cost Ratios 2017 * 2016* Participants (projects) 1,441 1,903 Energy Savings (kwh)** 85,425,027 88,160,599 Demand Reduction (MW) n/a n/a Idaho Energy Efficiency Rider $14,732,314 $14,319,999 Oregon Energy Efficiency Rider $701,336 $508,538 Idaho Power Funds $23,701 $125,500 Total Program Costs All Sources $15,457,351 $14,954,036 Utility Levelized Cost ($/kwh) $0.015 $0.014 Total Resource Levelized Cost ($/kwh) $0.032 $0.026 Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio *Metrics for each option (New Construction, Custom Projects, and Retrofits) are reported separately in appendices and in Supplement 1: Cost-Effectiveness. **2017 total includes 143,976 kwh of energy savings from 13 Green Motors projects. Description Three major program options targeting different energy efficiency projects are available to commercial, industrial, governmental, schools, and small-business customers in the company s Idaho and Oregon service areas. Custom Projects The Custom Projects option incentivizes energy efficiency modifications for new and existing facilities. The goal is to encourage energy savings in Idaho and Oregon service areas by helping customers implement energy efficiency upgrades. Incentives reduce customers payback periods for custom modifications that might not be completed otherwise. The Custom Projects option offers an incentive level of 70 percent of the project cost or 18 cents per kwh for first year estimated savings, whichever is less. The Custom Projects option also offers energy auditing services to help identify and evaluate potential energy-saving modifications or projects. Interested customers submit a pre-approval application to Idaho Power for potential modifications that have been identified by the customers, Idaho Power, or by a third-party consultant. Idaho Power reviews each application and works with the customer and vendors to gather sufficient information to support the energy-savings calculations. Once completed, customers submit a payment application; in some cases, large, complex projects may take as long as two years or more to complete. Every payment application is verified by Idaho Power staff or an Idaho Power contractor. All lighting projects utilize the Idaho Power lighting tool to calculate the annual energy savings and to determine the incentive. Page 119

128 Commercial/Industrial Sector C&I Energy Efficiency Program Idaho Power Company Each project is reviewed to ensure energy savings are achieved. Idaho Power engineering staff or a third-party consultant verifies the energy savings methods and calculations. Through the verification process, end-use measure information, project photographs, and project costs are collected. On many projects, especially the larger and more complex projects, Idaho Power or a third-party consultant conducts on-site power monitoring and data collection before and after project implementation. The measurement and verification process helps ensure the achievement of projected energy savings. Verifying applicants information confirms energy savings are obtained and are within program guidelines. If changes in scope take place in a project, a recalculation of energy savings and incentive amounts occurs based on the actual installed equipment and performance. New Construction The New Construction option enables customers in Idaho Power s Idaho and Oregon service areas to apply energy-efficient design features and technologies in new construction, expansion, or major remodeling projects. New construction and major renovation project design and construction life is much longer than small retrofits and often encompasses multiple calendar years. Originated in 2004, the program currently offers a menu of measures and incentives for efficient lighting, cooling, building shell, controls, appliances, and refrigeration options. These measures may otherwise be lost opportunities for savings on customers projects. Twenty-four prescriptive measures are offered: interior lighting, exterior lighting, daylight photo controls, occupancy sensors, high-efficiency exit signs, efficient A/C and heat pump units, efficient variable refrigerant flow units, efficient chillers, air-side economizers, direct evaporative coolers, evaporative pre-coolers on air-cooled condensers, reflective roof treatment, energy-management control systems, guest room energy-management systems, HVAC variable-speed drives, kitchen hood variable-speed drives, onion/potato shed ventilation variable-speed drives, efficient laundry machines, ENERGY STAR under-counter dishwashers, ENERGY STAR commercial dishwashers, refrigeration head-pressure controls, refrigeration floating-suction controls, efficient condensers, and smart power strips. Retrofits The Retrofits option is Idaho Power s prescriptive measure option for existing facilities. This part of the program encourages customers in Idaho and Oregon to implement energy efficiency upgrades by offering incentives on a defined list of measures. Eligible measures cover a variety of energy-saving opportunities in lighting, HVAC, building shell, variable-frequency drives (VFD), food-service equipment, and other commercial measures. Customers can also apply for non-standard lighting incentives. A complete list of the measures offered through Retrofits is included in Supplement 1: Cost-Effectiveness. Program Activities Often, projects exist that include scope that spans across multiple C&I Energy Efficiency program options. Prior to 2017, customers and trade allies had to fill out applications for each applicable program offering, while others would only apply through one program and perhaps not realize that multiple incentive paths were possible. Therefore, Idaho Power added a Custom Projects measure check box and a Custom Projects tab to the New Construction Application. Not only did this function create visibility Page 120

129 Idaho Power Company Commercial/Industrial Sector C&I Energy Efficiency Program for Custom Projects potential, it also eliminated the need to fill out multiple applications for projects with scope spanning the prescriptive and custom incentive paths. Custom Projects Incentive levels for the non-lighting projects remained the same in 2017, at 18 cents per kwh of firstyear savings with a 70-percent project cost cap on the incentive. The Custom Projects option had another very successful year with a total of 170 projects, of which four were in Oregon. Custom Projects achieved energy savings of 44,765,354 kwh. Energy savings decreased in 2017 by 6 percent over 2016, from 47,519 MWh to 44,765 MWh. Idaho Power also received 176 new applications representing a potential of 48,075 MWh of savings on future projects. Approximately 90 percent of large commercial and industrial customers have participated in the Custom Projects option. With the high percentage of customers who have taken advantage of the program, deeper energy savings continue to be challenging to achieve. The company is addressing this ongoing challenge in several ways by continuing to use multiple channels to reach customers and to encourage new energy-saving modifications. The company continues to expand the cohort offerings to new customers and new sectors. Table 15 indicates the program s 2017 annual energy savings by primary project measures. Table Custom Projects annual energy savings by primary project measure Program Summary by Measure Number of Projects kwh Saved Commissioning ,454,702 Compressed Air ,650,953 Controls ,832,897 HVAC ,777 Lighting ,868,688 Other ,094,602 Pump ,203 Refrigeration ,454,336 VFD ,049,196 Total * ,765,354 * Does not include Green Motor Initiative project counts and savings. Facility energy auditing, customer technical training, and education services are key components used to encourage customers to consider energy efficiency modifications. The Municipal Water Supply Optimization Cohort (MWSOC), Wastewater Energy Efficiency Cohort (WWEEC), and CEI Cohort for Schools program offerings are also driving a significant number of new projects in addition to increasing vendor engagement from the Streamlined Custom Efficiency (SCE) offering. The 2017 activities in the key components are described below. Facility Energy Auditing Idaho Power funds the cost of engineering services, up to $3,500, for conducting energy scoping audits to encourage its larger customers to adopt energy efficiency improvements. Currently, there are 11 firms on contract to provide scoping audits and general energy efficiency engineering support services. Page 121

130 Commercial/Industrial Sector C&I Energy Efficiency Program Idaho Power Company In 2017, Idaho Power consultants completed 41 scoping audits and five detailed audits on behalf of Idaho Power customers. These audits identified over 13,500 MWh of savings potential. Most of the customers engaged in these audits used the information to move forward with projects or expressed interest in moving forward in the near future. Program Education and Offerings Custom Projects engineers and the major customer representatives visited large-commercial and industrial customers in 2017 to conduct initial facility walk-throughs, commercial/industrial efficiency program informational sessions, and training on specific technical energy-saving opportunities. In addition, Idaho Power held ten comprehensive, targeted technical training sessions as described in the Commercial and Industrial overview section. Custom Projects engineers also gave presentations on Idaho Power programs and offerings at the International Society of Healthcare Engineers (ISHE) Conference and the Idaho Green Building and Energy Conference. In 2017, Custom Projects continued four offerings to increase the total program savings WWEEC, MWSOC, SCE, and the CEI Cohort for Schools. Wastewater Energy Efficiency Cohort In January 2014, Custom Projects launched WWEEC, a cohort training approach to low-cost or no-cost energy improvements. WWEEC was a two-year engagement with 11 Idaho Power service area municipalities and ended in Year-two incentives and savings totaled $4,040 and 2,454,702 kwh/year. In all cases, the incentive was capped at 70 percent of the eligible costs. Year-two incentives and savings were processed in Additionally, some WWEEC participants completed capital projects that were encouraged and discussed in the workshops and energy audits. These capital projects savings are captured separately and not included in the above number. Year-two of the offering consisted of phone call check-ins with the participants and model data updates. Municipal Water Supply Optimization Cohort The MWSOC officially launched in January The goal of the cohort was to equip water professionals with the skills necessary to identify and implement energy efficiency opportunities on their own, and to ensure that these energy and cost savings are maintained long term. Early in 2017, it was determined to extend the 18-month cohort to January 2018 to include a full 24 months of activity. There were some early adopters who started saving the first spring and into the busy summer watering months, as well as some late adopters who started saving late in the first year and went strong past the original 18-month period. An extended approach allowed for a year-one and a year-two savings period in lieu of one savings period. Incentive payments will be made and year-one savings will be accounted for in early January 2017 started the second year of the offering, activities included phone calls with the participants, in-person visits, and model data updates. Due to involvement with the WWEEC and MWSOC offerings, Custom Projects engineers also set up multiple program informational meetings with the area civil engineering firms specializing in water and wastewater designs to educate them on the Commercial and Industrial Energy Efficiency Program, the audit process, energy efficiency opportunities, and available tools and resources. A presentation on Page 122

131 Idaho Power Company Commercial/Industrial Sector C&I Energy Efficiency Program Idaho Power water and wastewater offerings was given at the 2017 Idaho Energy and Green Building Conference, and Idaho Power hosted a booth at the 2017 Department of Environmental Quality (DEQ) Water Reuse Conference. Continuous Energy Improvement Cohort for Schools The goal of this cohort is to equip school district personnel with hands-on training and guidance to help get the most out of their systems while reducing energy consumption. The Cohort for Schools Kickoff Workshop was held on January 26, 2017, and nine school districts were represented and introduced to the CEI concepts and planned activities for the cohort. From there, each district identified three pilot school facilities to focus on. Energy performance tracking models were built for each pilot facility based on historical utility information, occupation data, and facility equipment details. An opportunity register was created for each facility detailing low-cost and no-cost opportunities to reduce energy consumption based on site visits. A monthly check-in and coaching call was conducted each month for each school district to review opportunity register items and discuss their current activities. Four training webinars were delivered to the participants that included training on optimizing their HVAC systems, building effective teams, and understanding their electric bills. A mid-term workshop was held on July 20 where each district reported their experiences and results up to that date. An Energy Awareness Tool Bag was provided at the mid-term workshop that included tools staff could use to help find and quantify energy-reducing opportunities. Starting in the fall, scoping audits were provided for each participating school district, which identified capital project opportunities, in addition to the low-cost measures being implemented via the cohort, to help aid in the strategic capital planning process. Idaho Power program and incentive information, along with numerous other energy-saving resources pertinent to school facilities, were provided in hard copy and on flash drive to each school district. The 2017 activities concluded with a workshop on December 14 where the participants summarized their efforts and discussed their plans for implementing more energy-savings concepts within their respective school districts. The first year of the CEI Cohort for Schools was complete at the end of Idaho Power will finalize energy savings and eligible costs early in 2018 and provide the associated incentives to each participating school district. Streamlined Custom Efficiency Started in 2013, the SCE offering continues to keep vendor engagement high and provides custom incentives for small compressed-air system improvements, fast-acting doors in cold-storage spaces, refrigeration controllers for walk-in coolers, and process-related VFDs. This offering targets projects that may have typically been too small to participate in the Custom Projects option due to the resources required to adequately determine measure savings. Idaho Power contracted with a third party to manage SCE data collection and analysis for each project. In 2017, the SCE offering processed 44 projects, totaling 4,388,445 kwh per year of savings and $681,475 in incentives paid. New Construction The New Construction option continued to experience increased participation in In 2017, 121 projects were completed, the largest total number of projects completed in a calendar year, resulting in Page 123

132 Commercial/Industrial Sector C&I Energy Efficiency Program Idaho Power Company 17,353,820 kwh in annual energy savings in Idaho and Oregon. The total number of projects increased by over 4 percent from 116 projects in Maintaining a consistent offering is important for large projects with long construction periods, though changes are made to enhance customers options or to meet new code changes. Idaho Power tries to keep the New Construction option consistent by making less frequent changes, approximately every other year. The option was last modified in mid-2016 to include the addition of four new measures: evaporative pre-coolers on air-cooled condensers, kitchen hood variable-speed drives, onion/potato shed ventilation variable-speed drives, and smart-strip power strips. Thirty-nine projects received the Professional Assistance Incentive, an incentive given to architects and/or engineers for supporting technical aspects and documentation of the project, in 2017 (equal to 10 percent of the participant s total incentive, up to a maximum amount of $2,500) compared to 30 projects in Idaho Power customer representatives visited five architectural and engineering firms in Boise, Meridian, Garden City, Idaho Falls, and Pocatello in Customer representatives visited with 28 professionals to build relationships with the local design community, and to discuss Idaho Power s commercial and industrial energy efficiency programs. Two of the firms had not used energy efficiency programs before and are now engaging in projects with Idaho Power. The New Construction option continued random installation verification on 10 percent of projects in The purpose of the verifications is to confirm program guidelines and requirements are adequate and ensure participants are able to provide accurate and precise information with regard to energy efficiency measure installations. The IDL completed on-site field verifications on 14 of the 121 projects, which encompass over 11 percent of the total completed projects in the program. Out of the 14 projects verified, only minor discrepancies were discovered. The minor discrepancies consist of the addition or subtraction of lighting fixtures compared to what was claimed on the application. In 2017, Idaho Power made the following program improvements in response to recommendations in the 2016 impact evaluation by Leidos Engineering: Recommendation: Review fundamental units of measure used to calculate incentives and energy savings, and consider opportunities to align those units where possible for improved clarity on the application and in verifying savings. The units of measure used to calculate incentives and energy savings are currently being reviewed by a third party. Idaho Power contracted with ADM in 2017 to update the Technical Reference Manual (TRM). The revised TRM will provide updated savings and units of measure where necessary for existing measures. The New Construction application will be modified in 2018 to include updated measures and add clarity to the units of those measures. Recommendation: Investigate whether the program should limit eligibility of variable-speed drives on HVAC pumps and fans, lighting occupancy sensors, and/or energy management controls, where some of those measures or the operating conditions enabled by those measures are required by building energy code. ADM will update the TRM to address code changes that occurred January 1, 2018, in Idaho. The revised TRM will provide updated savings for existing measures and will define new eligibility requirements where necessary for New Construction. Page 124

133 Idaho Power Company Commercial/Industrial Sector C&I Energy Efficiency Program Recommendation: Review eligible energy management control strategies and energy savings assumptions relative to other control-based measures to ensure that the measure stacking methodology employed to adjust for multiple measures interactive effects fully avoids double counting savings enabled by the combination of the equipment and the controls. Idaho Power takes into account measure-stacking effects based on the methodology provided in the 2015 TRM. The revised TRM will provide an updated methodology to adjust savings as necessary for stacking effects. Retrofits The Retrofits option continued to experience good participation and energy savings in Affordable LED lighting comprised the majority of those projects. Idaho Power facilitated nine technical lighting classes across its service area targeting electrical contractors and large customers, with 232 in attendance. In addition, Idaho Power piloted an advanced lighting controls class with 17 electrical contractors in attendance. The pilot class was offered by the Design Lights Consortium (DLC), and NEEA contributed funds through its Luminaire Level Lighting Controls (LLLC) Initiative. Contractor feedback on the class was favorable. The DLC used the feedback to develop its next round of advanced lighting control classes. Idaho Power staff and contractors contacted numerous trade allies across the service area to respond to inquiries, strengthen relationships, encourage participation, increase knowledge of the incentives, and receive feedback about the market and individual experiences. This targeted outreach was to electrical contractors, electrical distributors, HVAC contractors, and food-service equipment suppliers. Idaho Power continued its contracts with Evergreen Consulting Group, LLC; Honeywell, Inc.; and RM Energy Consulting to provide ongoing program support for lighting and non-lighting reviews and inspections, as well as trade ally outreach. In 2017, Idaho Power made the following program improvements in response to observations in the 2016 impact evaluation by Leidos Engineering: Observation: Default wattage values for the certain types of lighting should be checked in the lighting calculator. Idaho Power response: The company retained a third party to review its default lighting wattage values used within its lighting tool. The third party found that Idaho Power s default wattages are within the range of what other utilities in the region are using; however, they did recommend three wattage adjustments. Idaho Power will incorporate these in its 2018 updated lighting tool. Observation: Clarification of how energy savings are attributed between measures that may be overlapping should be considered. Idaho Power response: This observation was regarding one non-lighting HVAC project. Idaho Power has retained a third party to evaluate this observation as part of its TRM review and update. The company will incorporate the results from the TRM update. Observation: While most of the project files had good explanatory notes, for projects that are multi phased, reviewers should especially be vigilant to note in the files the differences between the supporting invoicing and/or other documentation and the measures that are approved for the particular phase. Idaho Power response: There are projects where the invoices contain Page 125

134 Commercial/Industrial Sector C&I Energy Efficiency Program Idaho Power Company additional items/work outside the scope of the project being incentivized. Idaho Power has requested its project reviewers make notes in the project files when there are items on the invoice outside the project scope. Marketing Activities Since combining the separate commercial and industrial programs into this larger, simplified program, Idaho Power has continued to market the C&I Energy Efficiency Program options to trade allies, customers, and professional consultants who historically participated in only one commercial and industrial program offering. Several print ads highlighting program participants and the idea that all customers want to save money ran in 2017: Alaska Airline s Horizon Air Magazine, BOMA membership directory and symposium program, Idaho Association of General Contractors membership directory, Grow Smart Awards event program, the Idaho Business Review, and Business Insider. Additionally, Idaho Power sponsored the Construction section in the Idaho Business Review s Book of Lists, which included an ad, company logo in the table of contents, and an article highlighting Idaho Power and the company s energy efficiency programs. Idaho Power also revised the C&I Energy Efficiency Program brochure, business cards, and industryspecific energy efficiency tip brochures to promote the options as a single entity and to ensure a more consistent look among all marketing materials. The company also developed product technical sheets that provide in-depth information on various incentives and their paybacks. In March, a bill insert highlighting how Idaho Power s incentives can save customers money was included in 38,142 business customers bills. A similar bill insert was sent in 67,617 business customers bills in August to promote the program. The company also sent a letter to 230 architects and engineers promoting the New Construction option, while mentioning the Retrofits and Custom Projects options. Idaho Power sent a direct-mail to 24,173 business customers in April and 23,724 business customers in November highlighting the Retrofits option and informing customers of the New Construction and Custom Project incentives. The direct-mail makes customers aware of the company s energy saving opportunities and encourages them to contact their customer representative to learn more. In late 2017, the company began using paid LinkedIn ads to promote the C&I Energy Efficiency Program. Idaho Power placed three ads targeted toward a variety of job titles that typically have an interest in or input into energy efficiency projects, including C-suite executives, engineers, sustainability, maintenance, and facilities contacts. Targeting was only available to LinkedIn users in the Boise and Pocatello areas, and LinkedIn determined that approximately 62,000 individuals met the target audience. The ads resulted in 130,198 impressions; 822 engagements though website clicks, likes, shares, comments, and new follows; and an average click-through rate of percent Custom Projects Idaho Power s Custom Projects option is unique from the company s other energy efficiency options by providing individualized energy efficiency solutions to a somewhat small number of customers. Idaho Power s customer representatives often act as the company s sales force. Marketing supports the customer representatives and program specialists and engineers by providing written program materials to help them inform customers of the measures and benefits available to them. In 2017, Idaho Power Page 126

135 Idaho Power Company Commercial/Industrial Sector C&I Energy Efficiency Program created a flyer specific to the streamlined custom energy efficiency incentives. The company also placed an ad in the Idaho Business Review as part of the publication s Top Projects Awards that congratulated the 10 companies that had the most energy savings throughout the year. With the launch of the CEI Cohort for Schools, Idaho Power created numerous materials to promote and support the cohort. The company developed promotional flyers and letters, stickers encouraging students and faculty to turn off the lights, a tips PowerPoint for use on school TV monitors, and a sample school newsletter article. Idaho Power also posted about the cohort on Facebook and Twitter, and sent a News Briefs article to local media. The company also released a booklet in late 2017 that featured information and results on Idaho Power s Wastewater Energy Efficiency Cohort, information on how to join future cohorts, and tips for wastewater facilities to save energy. Cost-Effectiveness Custom Projects All projects submitted through the Custom Projects option must meet cost-effectiveness requirements, which include TRC, UC, and PCT tests from a project perspective. The program requires all costs related to the energy efficiency implementation and energy-savings calculations are gathered and submitted with the program application. Payback is calculated with and without incentives, along with the estimated dollar savings for installing energy efficiency measures. As a project progresses, any changes to the project are used to recalculate energy savings and incentives before the incentives are paid to the participant. To aid in gathering or verifying the data required to conduct cost-effectiveness and energy-savings calculations, third-party engineering firms are sometimes used via a scoping audit, detailed audit, or engineering measurement and verification services available under the Custom Projects option. Details for cost-effectiveness are in Supplement 1: Cost-Effectiveness. New Construction To calculate energy savings for the New Construction option, Idaho Power verifies the incremental efficiency of each measure over a code or standard practice installation baseline. Savings are calculated through two main methods. When available, savings are calculated using actual measurement parameters, including the efficiency of the installed measure compared to code-related efficiency. Another method for calculating savings is based on industry standard assumptions, when precise measurements are unavailable. Since the New Construction option is prescriptive and the measures are installed in new buildings, there are no baselines of previous measurable kwh usage in the building. Therefore, Idaho Power uses industry standard assumptions from the International Energy Conservation Code (IECC) to calculate the savings achieved over how the building would have used energy absent of efficiency measures. New Construction incentives are based on a variety of methods depending on the measure type. Incentives are calculated mainly through a dollar-per-unit equation using square footage, tonnage, operating hours, or kw reduction. Based on the current deemed savings value from the TRM, nearly all measures were cost-effective, with the exception of some air conditioning units and daylight photo controls. Idaho Power determined these measures met at least one of the cost-effectiveness exceptions outlined in OPUC Order No Page 127

136 Commercial/Industrial Sector C&I Energy Efficiency Program Idaho Power Company Idaho Power had received a cost-effectiveness exception on these measures when it filed changes to the program in 2014 under Advice No When Idaho Power filed Advice No for the combined commercial and industrial program, the company requested and received another cost-effectiveness exception for variant refrigerant flow (VRF) heat pumps. To prepare for 2018 program changes, ADM, under contract with Idaho Power, will update the TRM for New Construction in The TRM, which provides savings and costs related to existing and new measures for the New Construction option, will be updated to include the IECC 2015 baseline. These new savings will be applied in the mid-2018 New Construction update. Complete measure-level details for cost-effectiveness can be found in Supplement 1: Cost-Effectiveness. Retrofits In 2017, Idaho Power used most of the same savings and assumptions as were used in 2016 for the Retrofits option. For all lighting measures, Idaho Power uses a lighting tool calculator developed by Evergreen Consulting, Group LLC. An initial analysis was conducted to see if the lighting measures shown in the tool were cost-effective based on the average input of watts and hours of operation, while the actual savings for each project are calculated based on specific information regarding the existing and replacement fixture. For most non-lighting measures, deemed savings from the TRM or RTF are used to calculate the cost-effectiveness. To prepare for 2018 program changes, ADM, under contract with Idaho Power, will update the TRM for the Retrofit option. The TRM provides savings and costs related to existing and new measures for the Retrofit option. The TRM will be updated to include the IECC 2015 baseline for several heating and cooling measures. Several measures that are not cost-effective remain in the program. These measures include highefficiency A/C units and heat pump units. After reviewing these measures, Idaho Power determined the measures met at least one of the cost-effectiveness exceptions outlined in OPUC Order No These cost-effectiveness exceptions were approved by the OPUC in Advice No in When Idaho Power filed Advice No for the combined commercial and industrial program, the company requested and received another cost-effectiveness exception for VRF heat pumps. Complete measure-level details for cost-effectiveness can be found in Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations Customer satisfaction with regard to the C&I Energy Efficiency Program is mentioned in the Commercial and Industrial Sector Overview. In 2017, a process evaluation for all of the C&I Energy Efficiency Program options was conducted by DNV-GL. DNV-GL reported that overall, the program is well-run. Program staff know their objectives and manage toward them proactively. There is well-written documentation for many of the administrative tasks. Application forms are easy to navigate and contain features that reduce applicant burden. The marketing materials are visually appealing and follow industry best practices. Tracking databases contain all necessary information, and are consistent with project files, except in a few minor instances. QA/QC procedures are well-documented, and the inspection reports are detailed and thorough. Page 128

137 Idaho Power Company Commercial/Industrial Sector C&I Energy Efficiency Program While DNV GL provided several recommendations, they discovered no fundamental shortcomings or deficiencies in the way the program is run. Recommendations from this evaluation will be considered in 2018, and any action taken will be reported in the 2018 DSM Annual Report. A copy of the evaluation can be found in Supplement 2: Evaluation Program and Marketing Strategies Idaho Power will expand its promotion of the C&I Energy Efficiency Program to additional online and print business publications. Below are specific strategies that apply to the individual components of the program. Custom Projects Over the years, the Custom Projects option has achieved a high service-area penetration rate. As stated previously, approximately 90 percent of the large-power service customers have participated in the Custom Projects option. The company is actively working to support these customers in new ways and find additional opportunities for cost-effective energy saving projects. Additional program offerings are currently under consideration for implementation in 2018, including an Eastern Idaho Municipal Water Strategic Energy Management (SEM) Cohort and an SEM Continuation of Services offering for the customers who are engaged and are interested in continuing their success, or have improved their readiness for SEM engagement. Activities and coaching will continue for the MWSOC participants, and the final report-out workshop will be held in spring of Idaho Power is also investigating details related to continuation and/or expansion of the CEI Cohort for Schools offering in Idaho Power will continue to provide site visits by Custom Projects engineers and energy scoping audits for project identification and energy-savings opportunities; measurement and verification of larger, complex projects; technical training for customers; and funding for detailed energy audits for larger, complex projects. Custom Projects will continue to be marketed as part of Idaho Power s C&I Energy Efficiency Program. New Construction Idaho Power will continue to perform random post-project verifications on a minimum of 10 percent of completed projects, sponsor technical training through the IDL to address the energy efficiency education needs of design professionals throughout the Idaho Power service area, and build relationships with local design professionals by targeting Idaho Power s Twin Falls and Canyon areas. A review of all measures began in late 2017 and will continue into Results of that review will be implemented in mid-2018 to meet new code changes. The New Construction option will continue to be marketed as part of Idaho Power s C&I Energy Efficiency Program. Retrofits Idaho Power will offer an advanced lighting controls class to trade allies. In addition, the lighting and non-lighting measures will be reviewed and any resulting updates will be implemented mid Idaho Power will again coordinate with NEEA and the DLC to offer another advanced lighting control class in Page 129

138 Commercial/Industrial Sector C&I Energy Efficiency Program Idaho Power Company Retrofits will continue to be marketed as part of Idaho Power s C&I Energy Efficiency Program. Page 130

139 Idaho Power Company Commercial/Industrial Sector Flex Peak Program Flex Peak Program Participation and Savings Participants (sites) Energy Savings (kwh) n/a n/a Demand Reduction (MW) Program Costs by Funding Source Idaho Energy Efficiency Rider $86,861 $105,116 Oregon Energy Efficiency Rider $231,285 $247,897 Idaho Power Funds $340,010 $414,984 Total Program Costs All Sources $658,156 $767,997 Program Levelized Costs Utility Levelized Cost ($/kwh) n/a n/a Total Resource Levelized Cost ($/kwh) n/a n/a Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a n/a Total Resource Benefit/Cost Ratio n/a n/a Description The Flex Peak Program is a voluntary program available in Idaho and Oregon service areas. It s designed for Idaho Power s large-commercial and industrial customers, with the objective to reduce the demand on Idaho Power s system during periods of extreme peak electricity use. Flex Peak Program participants earn a financial incentive for reducing load during peak electricity use: non-holiday weekdays, June 15 to August 15, between the hours 2:00 p.m. and 8:00 p.m. Reduction events may be called a maximum of 60 hours per season. Customers with the ability to offer load reduction of at least 20 kw are eligible to enroll in the program. The 20-kW threshold allows a broad range of customers to participate in the program. Participants receive notification of a load reduction event two hours prior to the start of the event, and events last between two to four hours. The program originated in 2009 as the FlexPeak Management program managed by a third-party contractor. In 2015, Idaho Power took over full administration, and changed the name to Flex Peak Program. The IPUC issued Order No on May 7, 2015, while the OPUC approved Advice No on May 1, 2015, authorizing Idaho Power to implement an internally managed Flex Peak Program (Schedule No. 82 in Idaho and Schedule No. 76 in Oregon), and to continue recovery of its demand response program costs in the previous manner. Program Activities During the off season, the company filed a Tariff Advice with the Commission to revise Schedule 82, Flex Peak Program on December 16, The five main requests were to clarify aggregated and single-site metering reductions, add text messaging as a notification option to the program, outline the process for changing nomination amounts, add a bill credit option for incentive payments, and Page 131

140 Commercial/Industrial Sector Flex Peak Program Idaho Power Company implement the auto-enrollment option for customers each season. The IPUC approved the Tariff Advice as filed on January 20, 2017, with an effective date of February 1, In 2017, 65 participants enrolled 141 sites in the program. Existing customers were automatically re-enrolled in the program. Of those 141 sites, five were new for Participants had a committed load reduction of 35.1 MW in the first week of the program and ended the season with an amount of 35.8 MW. This weekly commitment, or nomination, was comprised of all 141 sites, 136 of which had participated in the 2016 season. The maximum realization rate during the season was 98 percent, and the average for all three events combined was 81 percent. The realization rate is the percentage of load reduction achieved versus the amount of load reduction committed for an event. The highest hourly load reduction achieved was 36 MW during the June 26 event. The first event was called on Monday, June 26. Participants were notified at 2:00 p.m. of a four-hour event from 4:00 p.m. to 8:00 p.m. The total nomination for this event was 35.1 MW for each hour. The average load reduction was 34.4 MW, with the highest hourly load reduction of 36 MW from 6:00 p.m. to 7:00 p.m. The realization rate for this event was 98 percent. A second event was called on Friday, July 14. Participants were notified at 2:00 p.m. of a four-hour event from 4:00 p.m. to 8:00 p.m. The total nomination for this event was 35.4 MW for each hour. The average load reduction was 26.4 MW, with the highest hourly load reduction of 28.4 MW from 4:00 p.m. to 5:00 p.m. The realization rate for this event was 75 percent. The lower realization rate for this event was primarily because some larger sites run reduced shifts on Fridays while others close early on Fridays. The third event was called on Wednesday, August 2. Participants were notified at 2:00 p.m. of a fourhour event from 4:00 p.m. to 8:00 p.m. The total nomination for this event was 35.8 MW. The average load reduction was 25.1 MW, with the highest hourly load reduction of 25.5 MW from 5:00 p.m. to 6:00 p.m. The realization rate for this event was 70 percent. The lower realization rate for this event was primarily because some larger sites underperformed or had reduced participation due to vital operational needs. One larger customer with seven sites did not participate at all due to operational constraints. Marketing Activities Idaho Power developed new program literature including an industry-specific load-reduction tips flyer. The Flex Peak Program was also promoted along with the C&I Energy Efficiency Program. Additional details can be found in the Marketing section of this report. Customer representatives conducted field visits in early spring to identify characteristics that make successful program participants based on load size, load traits, and type of operation. Customer representatives also communicated available incentive amounts based on customer load size. Cost-Effectiveness Idaho Power determines cost-effectiveness for its demand response program under the terms of IPUC Order No and OPUC Order No Under the terms of the orders and the settlement, all of Idaho Power s demand response programs were cost-effective for Page 132

141 Idaho Power Company Commercial/Industrial Sector Flex Peak Program The Flex Peak Program was dispatched for 12 event hours and achieved a maximum reduction of 36 MW. The total cost of the program in 2017 was $658,156. Had the Flex Peak Program been used for the full 60 hours, the cost would have been approximately $928,000. A complete description of Idaho Power cost-effectiveness of its demand response programs is included in Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations Idaho Power did not conduct a post-season survey this year because there were no significant changes made to the program from the last two seasons. The prior two years surveys were favorable, and the company believes conducting a survey every two to three years will reduce survey fatigue, considering this customer segment also participates in the quarterly Customer Satisfaction Research Survey conducted by Burke, Inc. An evaluation of the potential load reduction impacts in 2017 was conducted internally by Idaho Power. The goal of the review performed by Idaho Power was to calculate the load reduction in MW for the program. The analysis also verified load reduction per site and per event. A copy of the results of this study is located in Supplement 2: Evaluation Program and Marketing Strategies The company will continue to communicate the value proposition with enrolled customers and the importance of active participation when events are called. Idaho Power will meet with existing participants during the off-season to discuss past-season performance and upcoming season details. For the upcoming season, Idaho Power plans to focus on retaining currently enrolled customers. Under the terms of IPUC Order No and OPUC Order No , Idaho Power does not plan to actively market this program, however, it will enroll new customers who show interest and are a good fit for the program. The program will be jointly marketed along with Idaho Power s applicable energy efficiency programs as needed. The company will use its customer representatives to retain the currently enrolled sites and encourage new sites to participate. See the Marketing section of this report for 2018 marketing strategies. Page 133

142 Commercial/Industrial Sector Oregon Commercial Audits Idaho Power Company Oregon Commercial Audits Participation and Savings Participants (audits) 13 7 Energy Savings (kwh) n/a n/a Demand Reduction (MW) n/a n/a Program Costs by Funding Source Idaho Energy Efficiency Rider $0 $0 Oregon Energy Efficiency Rider $8,102 $7,717 Idaho Power Funds $0 $0 Total Program Costs All Sources $8,102 $7,717 Program Levelized Costs Utility Levelized Cost ($/kwh) n/a n/a Total Resource Levelized Cost ($/kwh) n/a n/a Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a n/a Total Resource Benefit/Cost Ratio n/a n/a Description Oregon Commercial Audits identifies opportunities for commercial building owners to achieve energy savings. Initiated in 1983, this statutory required program (ORS ) is offered under Oregon Tariff Schedule No. 82. Through this program, Idaho Power provides free energy audits, evaluations, and educational products to customers. Energy audits provide the opportunity to discuss utility incentives available to customers who install qualifying energy efficiency measures. Business owners can decide to change operating practices or make capital improvements designed to use energy wisely. Program Activities Thirteen customers requested assistance in Of those requests, EnerTech Services, a third-party contractor, completed six audits, Idaho Power personnel completed five audits, and two customers received energy-saving tips and information after they decided a full audit was not needed. The costs were higher in 2017 from 2016 because the third-party contractor performed two more audits than the prior year. Auditors inspected the building shell, HVAC equipment, lighting systems, and operating schedules, if available, and reviewed the customers past billing data. Additionally, these visits provided a venue for auditors to discuss incorporating specific business operating practices for energy savings, and to distribute energy efficiency program information. Marketing Activities Idaho Power sent its annual direct-mailing to 1,549 Oregon commercial customers in September regarding the program s no-cost or low-cost energy audits, and the available energy-saving tips and resources information. Page 134

143 Idaho Power Company Commercial/Industrial Sector Oregon Commercial Audits Cost-Effectiveness As previously stated, the Oregon Commercial Audits program is a statutory program offered under Oregon Schedule 82, the Commercial Energy Conservation Services Program. Because the required parameters of the Oregon Commercial Audit program are specified in Oregon Schedule 82 and the company abides by these specifications, this program is deemed to be cost-effective. Idaho Power claims no energy savings from this program. Customer Satisfaction and Evaluations Idaho Power conducted no customer satisfaction surveys or evaluations in Anecdotally, customers reported being pleased with the audit process because the audits helped identify energy-saving opportunities that were not obvious Program and Marketing Strategies The Oregon Commercial Audits program will continue to be an important avenue for Idaho Power to help customers identify energy-saving opportunities. Idaho Power will continue to market the program through the annual customer notification. Page 135

144 Irrigation Sector Overview Idaho Power Company Irrigation Sector Overview The irrigation sector is comprised of agricultural customers operating water-pumping or water-delivery systems to irrigate agricultural crops or pasturage. End-use electrical equipment primarily consists of agricultural irrigation pumps and center pivots. The irrigation sector does not include water pumping for non-agricultural purposes, such as the irrigation of lawns, parks, cemeteries, golf courses, or domestic water supply. In December 2017, the active and inactive irrigation service locations totaled 20,932 system-wide. This was an increase of 1.4 percent compared to 2016, primarily due to the addition of service locations for pumps and pivots to convert land previously furrow irrigated to sprinkler irrigation. Irrigation customers accounted for 1,771,813 MWh of energy usage in 2017, which was a decrease from 2016 of approximately 9.5 percent primarily due to variations in weather. This sector represented nearly 12 percent of Idaho Power s total electricity sales, and approximately 28 percent of July sales. Energy usage for this sector has not changed significantly in many years; however, there is substantial yearly variation in usage due primarily to the impact of weather on customer irrigation needs. Idaho Power offers two programs to the irrigation sector: 1. Irrigation Efficiency Rewards, an energy efficiency program designed to encourage the replacement or improvement of inefficient systems and components. 2. Irrigation Peak Rewards, a demand response program designed to provide a system peak resource. The Irrigation Efficiency Rewards program, including Green Motor Initiative, experienced increased annual savings, from 15,747 MWh in 2016 to 16,888 MWh in Annual savings were up in 2017 likely because several large projects were completed in Idaho Power successfully recruited the majority of 2016 Irrigation Peak Rewards participants to continue their participation in 2017, with a small increase of 1.5 percent in eligible service points participating over Table 16 summarizes the overall expenses and program performance for both the energy efficiency and demand response programs provided to irrigation customers. Page 136

145 Idaho Power Company Irrigation Sector Overview Table irrigation program summary Total Cost Program Participants Utility Resource Demand Response Annual Energy (kwh) Savings Peak Demand (MW) Irrigation Peak Rewards... 2,307 service points $ 7,223,101 $ 7,223,101 n/a 318 Total... $ 7,223,101 $ 7,223,101 n/a 318 Energy Efficiency Irrigation Efficiency Rewards projects $ 2,475,677 $ 8,382,962 16,824,266 Green Motors Irrigation motor rewinds 63,783 Total... $ 2,475,677 $ 8,382,962 16,888, Note: See Appendix 3 for notes on methodology and column definitions. Each year, the company conducts a customer relationship survey. Overall, 54 percent of Idaho Power irrigation customers surveyed in 2017 for the Burke Customer Relationship Survey indicated Idaho Power was meeting or exceeding their needs in offering energy efficiency programs. Fifty-two percent of survey respondents indicated Idaho Power is meeting or exceeding their needs with information on how to use energy wisely and efficiently. Sixty-five percent of respondents indicated Idaho Power is meeting or exceeding their needs with encouraging energy efficiency with its customers. Overall, 41 percent of the irrigation survey respondents indicated they have participated in at least one of the company s energy efficiency programs. Of irrigation survey respondents who have participated in at least one energy efficiency program, 91 percent are very or somewhat satisfied with the programs. Training and Education Idaho Power continued to market its irrigation programs by varying the location of workshops and offering new presentations to irrigation customers. In 2017, Idaho Power provided nine workshops promoting the Irrigation Efficiency Rewards program. Approximately 200 customers attended workshops in Blackfoot, Buhl, Mountain Home, Marsing, Midvale, Paul, Salmon, and Twin Falls, in Idaho, and Halfway and Vale in Oregon. The company displayed exhibits at regional agricultural trade shows, including the Idaho Irrigation Equipment Association Winter Show, Eastern Idaho Agriculture Expo, Western Idaho Agriculture Expo, the Agri-Action Ag show, and the Treasure Valley Irrigation Conference. Idaho Power sends out Irrigation News to all irrigation customers in Idaho and Oregon, which provides an opportunity to increase awareness and to promote the company s Irrigation programs. Field Staff Activities Idaho Power s agricultural representatives offer customer education, training, and irrigation-system assessments and audits across the service area. Agricultural representatives also engage agricultural irrigation equipment dealers in training sessions with the goal of sharing expertise about energy-efficient system designs and bringing awareness about the program. Agricultural representatives and the irrigation segment coordinator, a licensed agricultural engineer, participate in annual training to maintain or obtain their Certified Irrigation Designer and Certified Agricultural Irrigation Specialist accreditation. Page 137

146 Irrigation Sector Overview Idaho Power Company This training allows Idaho Power to maintain its high level of expertise in the irrigation industry and is sponsored by the nationally based Irrigation Association. Page 138

147 Idaho Power Company Irrigation Sector Irrigation Efficiency Rewards Irrigation Efficiency Rewards Participation and Savings Program Costs by Funding Source Program Levelized Costs Benefit/Cost Ratios Participants (projects) Energy Savings (kwh) * 16,888,049 15,747,130 Demand Reduction (MW) n/a n/a Idaho Energy Efficiency Rider $2,230,798 $1,672,328 Oregon Energy Efficiency Rider $192,416 $634,101 Idaho Power Funds $52,463 $65,923 Total Program Costs All Sources $2,475,677 $2,372,352 Utility Levelized Cost ($/kwh) $0.018 $.018 Total Resource Levelized Cost ($/kwh) $0.060 $.063 Utility Benefit/Cost Ratio Total Resource Benefit/Cost Ratio *2017 total includes 63,783 kwh of energy savings from 27 Green Motors projects Description Initiated in 2003, the Irrigation Efficiency Rewards program encourages energy-efficient equipment use and design in irrigation systems. Qualified irrigators in Idaho Power s service areas can receive financial incentives and reduce their electricity usage through participation in the program. Two options help meet the needs for major or minor changes to new or existing systems: Custom Incentive and Menu Incentive. Custom Incentive Option The Custom Incentive Option addresses extensive retrofits or installation of an efficient new system. For a new system, the incentive is based on installation of a system Idaho Power determines to be more energy efficient than standard. Water source changes to an existing system are treated as a new system. The incentive is 25 cents per annual kwh saved, not to exceed 10 percent of the project cost. For existing system upgrades, the incentive is 25 cents per annual kwh saved or $450 per kw demand reduction, whichever is greater. The incentive is limited to 75 percent of the total project cost. The qualifying energy efficiency measures include any hardware changes that result in a reduction of the potential kwh use of an irrigation system. Idaho Power reviews, analyzes, and makes recommendations on each project. All project information is reviewed for each completed project before final payment. Prior usage history, actual invoices, and in most situations, post-usage demand data are used to verify savings and incentives. Menu Incentive Option The Menu Incentive Option covers a portion of the costs of repairing and replacing specific components that help the irrigation system use less energy. This option is designed for systems where small Page 139

148 Irrigation Sector Irrigation Efficiency Rewards Idaho Power Company maintenance upgrades provide energy savings from 11 separate measures. These measures are as follows: New flow-control type nozzles New nozzles for impact, rotating, or fixed-head sprinklers New or rebuilt impact or rotating type sprinklers New or rebuilt wheel-line levelers New complete low-pressure pivot package New drains for pivots or wheel-lines New riser caps and gaskets for hand-lines, wheel-lines, and portable mainlines New wheel-line hubs New pivot gooseneck and drop tube Leaky pipe repair New center pivot base boot gasket Payments are calculated on a predetermined average kwh savings per component. Program Activities In 2017, 801 irrigation efficiency projects were completed as follows: 671 utilized the Menu Incentive Option, and provided an estimated 11,822 MWh of energy savings and 2.89 MW of demand reduction; 130 utilized the Custom Incentive Option (61 were new and 69 were existing) and provided 5,002 MWh of energy savings and 1.7 MW of demand reduction for the year. Marketing Activities In addition to training and education mentioned in the sector overview section, Idaho Power agricultural representatives targeted a select number of nonparticipants to increase program awareness. Idaho Power maintained a database of irrigation dealers and vendors for direct-mail communication as they are a key component to the successful marketing of the program. Therefore, Idaho Power s face-to-face interactions and direct-mailings contain the most up-to-date program information, brochures, and dealer-specific meetings to ensure correct program promotion. Cost-Effectiveness Idaho Power calculates cost-effectiveness using different savings and benefits assumptions and measurements under the Custom Incentive Option and the Menu Incentive Option of Irrigation Efficiency Rewards. Each application under the Custom Incentive Option received by Idaho Power undergoes an assessment to estimate the energy savings that will be achieved through a customer s participation in the program. On existing system upgrades, Idaho Power calculates the savings of a project by determining what changes are being made and comparing it to the service point s previous five years of electricity usage history on a case-by-case basis. On new system installations, the company uses standard practices as the Page 140

149 Idaho Power Company Irrigation Sector Irrigation Efficiency Rewards baseline and determines the efficiency of the applicant s proposed project. Based on the specific equipment to be installed, the company calculates the estimated post-installation energy consumption of the system. The company verifies the completion of the system design through aerial photographs, maps, and field visits to ensure the irrigation system is installed and used in the manner the applicant s documentation describes. Each application under the Menu Incentive Option received by Idaho Power also undergoes an assessment to ensure deemed savings are appropriate and reasonable. Payments are calculated on a prescribed basis by measure. In some cases, the energy-savings estimates in the Menu Incentive Option are adjusted downward from deemed RTF savings to better reflect known information on how the components are actually being used. For example, a half-circle rotation center pivot will only save half as much energy per sprinkler head as a full-circle rotation center pivot. All deemed savings are based on seasonal operating hour assumptions by region. If a system s usage history indicates it has lower operating hours than the assumptions, like the example above, the deemed savings are adjusted. Based on the deemed savings from the RTF, all the measures offered under the Menu Incentive Option are cost-effective with the exception of the rebuilt or new brass impact sprinklers. However, this measure has a UC ratio of 3.71 and a TRC ratio of Non-energy benefits are difficult to quantify at the measure level and are not included in the TRC ratio. This measure meets the cost-effectiveness exceptions as defined by the OPUC. Complete measure-level details for cost-effectiveness can be found in Supplement 1: Cost-Effectiveness. Customer Satisfaction and Evaluations Idaho Power has received positive face-to-face feedback with vendors, dealers, and participants who use the Irrigation Efficiency Rewards program. Idaho Power conducted no direct customer satisfaction surveys or evaluations for this program in Program and Marketing Strategies Marketing plans for 2018 include conducting six to eight customer-based irrigation workshops to promote energy efficiency technical education as well as program specifics. Additionally, Idaho Power will continue to participate in three regional agricultural trade shows, in addition to sponsoring and participating in the Treasure Valley Irrigation Conference, the Idaho Irrigation Equipment Association Show & Conference, and the Soil Health Symposium. Idaho Power will work closely with customers who have participated in the Irrigation Efficiency Rewards program, and will make application forms perforated so they re easier to remove and mail in. Marketing the program to irrigation vendors will continue to be a priority. Idaho Power will continue to promote the program in agriculturally focused editions of newspapers and magazines, and to provide valuable information in its Irrigation News newsletter. Page 141

150 Irrigation Sector Irrigation Peak Rewards Idaho Power Company Irrigation Peak Rewards Participation and Savings Participants (participants) 2,307 2,286 Energy Savings (kwh) n/a n/a Demand Reduction (MW) Program Costs by Funding Source Idaho Energy Efficiency Rider $743,948 $1,082,113 Oregon Energy Efficiency Rider $205,528 $218,906 Idaho Power Funds $6,273,625 $6,299,056 Total Program Costs All Sources $7,223,101 $7,600,076 Program Levelized Costs Utility Levelized Cost ($/kwh) n/a n/a Total Resource Levelized Cost ($/kwh) n/a n/a Benefit/Cost Ratios Utility Benefit/Cost Ratio n/a n/a Total Resource Benefit/Cost Ratio n/a n/a Description Idaho Power s Irrigation Peak Rewards program is a voluntary demand response program available to agricultural irrigation customers with metered service locations that have participated in the past. Initiated in 2004, the purpose of the program is to minimize or delay the need to build new supply-side resources. The program pays irrigation customers a financial incentive to interrupt the operation of specified irrigation pumps with the use of one or more load control devices. Historically, the Irrigation Peak Rewards program provides approximately 320 MW of load reduction during the program season of June 15 through August 15, which is nearly 9 percent of Idaho Power s all-time system peak. The program offers two interruption options: an Automatic Dispatch Option and a Manual Dispatch Option. To participate in the Automatic Dispatch Option, either an AMI or a cellular control device is attached to the customer s electrical panel that allows Idaho Power to remotely control the pumps. To participate in the Manual Dispatch Option, Idaho Power must determine that the service location cannot take advantage of the current installation and communication technology, or the service point offers at least 1,000 cumulative horsepower (hp). These customers must nominate a particular amount of kw reduction by June 1 of the program year and are compensated based on their actual load reduction. For either interruption option, load control events could occur up to four hours per day, up to 15 hours per week, but no more than 60 hours per season (June 15 to August 15). Idaho Power will conduct at least three events per season between 1:00 p.m. and 9:00 p.m. excluding Sundays. The incentive structure consists of fixed and variable payments. The fixed incentive is $5.00/kW with an energy credit of $0.0076/kWh for the first three events. The variable credit is $0.148/kWh on the fourth and subsequent events that occur between 1:00 p.m. and 8:00 p.m., and increased to $0.198/kWh when Page 142

151 Idaho Power Company Irrigation Sector Irrigation Peak Rewards customers allow Idaho Power to interrupt their pumps until 9:00 p.m. The demand credit is calculated by multiplying the monthly billing kw by the demand-related incentive amount. The energy credit is calculated by multiplying the monthly billing kwh usage by the energy-related incentive amount. The incentive is applied to monthly bills, and credits are prorated for periods when reading/billing cycles do not align with the program season dates. Program rules allow customers the ability to opt out of dispatch events up to five times per service point. The first three opt outs each incur a penalty of $5 per kw, while the remaining two each incur a penalty of $1 per kw based on the current month s billing kw. The opt-out penalty may be prorated to correspond with the dates of program operation, and are accomplished through manual bill adjustments. The penalties will never exceed the amount of the incentive that would have been paid with full participation. Program Activities In the early months of 2017, Idaho Power replaced communication devices at services to support the move to bring the program more directly under Idaho Power s control. Idaho Power enrolled 2,307 service points in the program in 2017, an increase of 1 percent over The enrolled service points accounted for approximately 83.5 percent of the eligible service points. The total pump count increased, while the nominated kw decreased 1 percent from MW in 2016 to MW in The company utilized three electrical contractors during the winter of 2016/17 to exchange all of the EnerNOC/M2M devices for Aclara demand-response units and cellular devices for dispatching. By discontinuing the third-party management of these devices and communication services, Idaho Power expects to see an overall reduction in program costs. The incentive rate remained the same in The three load-control events occurred June 20, July 6, and August 3 with the highest load reduction occurring on July 6, providing an estimated 318 MW at the generation level. See Supplement 2: Evaluations for a complete report about these events. Marketing Activities Idaho Power used workshops, trade shows, and direct-mailings to encourage past participants to re-enroll in the program. See the Irrigation Sector Overview section. The company updated an informational flyer to increase appeal and readability by using a brochure format. Idaho Power mailed the new brochure sign-up worksheet and contract agreement to all eligible participants in March Cost-Effectiveness Idaho Power determines cost-effectiveness for the demand response programs under the terms of IPUC Order No and OPUC Order No Under the terms of the orders and the settlement, all of Idaho Power s demand response programs were cost-effective for The Irrigation Peak Rewards program was dispatched for 12 event hours and achieved a maximum demand reduction of MW. The total expense for 2017 was $7.2 million and would have been approximately $9.2 million if the program was operated for the full 60 hours. A complete description of cost-effectiveness results for Idaho Power s demand response programs is included in Supplement 1: Cost-Effectiveness. Page 143

152 Irrigation Sector Irrigation Peak Rewards Idaho Power Company Customer Satisfaction and Evaluations Idaho Power conducted no customer satisfaction surveys for this program in Each year, Idaho Power produces an internal annual report for the Irrigation Peak Rewards program. This report includes a load-reduction analysis, cost-effectiveness information, and program changes. A copy is included in Supplement 2: Evaluation. In 2017, Idaho Power conducted a potential realization rate analysis and, as in past years, that potential event date has a large influence on the expected realization rate. Table 18 shows the season in two-week blocks and the potential realization rate associated with each. The realization rate drops off significantly in August due to a higher percentage of pumps turned off during the baseline period. The 2017 counterfactual realization rate peaked the first week of July. The analysis determined the highest realization rate of 77.4 percent occurred July 6, coincident with the second Irrigation Peak Rewards demand response event. A further breakdown of the load reduction for each event by program option is shown in Table 17. Table 17. Irrigation Peak Rewards program load reduction for each 2017 event by program option Event Automatic Dispatch Option (MW) Manual Dispatch Option (MW) Total Load (MW) June July August Table 18. Irrigation Peak Rewards 2017 potential realization rate 2017 Season Timeframe Average Potential Realization Rate June 15 June % July 1 July % July 16 July % August 1 August % 2018 Program and Marketing Strategies Idaho Power will continue to recruit past participants in this program for the 2018 irrigation season. The company will include information on the program at its irrigation workshops in conjunction with the Irrigation Efficiency Program. Each eligible customer will be sent a comprehensive packet containing an informational brochure, sign-up worksheet, and contract agreement encouraging their participation. Idaho Power agricultural representatives will continue one-on-one customer contact to inform and encourage program participation. Page 144

153 Idaho Power Company Other Programs and Activities Green Motors Initiative OTHER PROGRAMS AND ACTIVITIES Idaho Power participates in the Green Motors Practices Group s (GMPG) Green Motors Initiative (GMI). Under the GMI, service center personnel are trained and certified to repair and rewind motors in an effort to improve reliability and efficiency. If a rewind returns a motor to its original efficiency, the process is called a Green Rewind. By rewinding a motor under this initiative, customers may save up to 40 percent when compared to buying a new motor. The GMI is available to Idaho Power s agricultural, commercial, and industrial customers. Twenty-one service centers in Idaho Power s service area have the training and equipment to participate in the GMI, and perform an estimated 1,200 Green Rewinds annually. Of the 21 service centers, currently nine have signed on as GMPG members. The GMPG will work to expand the number of service centers participating in the GMI, leading to market transformation and an expected kwh savings in southern Idaho and eastern Oregon. Under the initiative, Idaho Power pays service centers $2 per hp for each National Electrical Manufacturers Association (NEMA)-rated motor up to 5,000 hp that received a verified Green Rewind. Half of that incentive is passed on to customers as a credit on their rewind invoice. The GMPG requires all member service centers to sign and adhere to the GMPG Annual Member Commitment Quality Assurance agreement. The GMPG is responsible for verifying quality assurance. In 2017, a total of 40 motors were rewound under the GMI. Table 19 provides a breakdown of energy savings and the number of motors by customer segment. Table Green Motor Initiative savings, by sector and state Sector State Number of Motors Sum of kwh Savings Irrigation ID 26 51,102 OR 1 12,681 Irrigation Total 27 63,783 Commercial and Industrial ID ,287 OR 1 14,689 Commercial and Industrial Total ,976 Grand Total ,759 Idaho Power s Internal Energy-Efficiency Commitment Idaho Power continues to upgrade the company s substation buildings across its service area. Efforts in 2017 also focused on providing energy-efficient heating and cooling. In 2018 the company will continue to replace T-12 lighting with LEDs and standard thermostats with smart thermostats. Renovation projects continued at the CHQ in downtown Boise in 2017 with a project to complete exchanging the old T-12 parabolic lighting fixtures with LED lighting. Remodels continued to Page 145

154 Other Programs and Activities Idaho Power Company incorporate energy efficiency measures, such as lower partitions, lighting retrofits, and automated lighting controls. In Blackfoot, Pocatello, Twin Falls, and many other areas within Idaho Power s service area, the company continued to replace existing high bay lighting in truck bays and shops with more efficient LED lighting. In 2016, Idaho Power redesigned the HVAC delivery system for the Maintenance and Electrical Shops; construction on these projects is planned for These improvements to the shops will reduce energy consumption in coming years. Idaho Power s internal energy efficiency projects and initiatives are funded by non-rider funds. Idaho Power continued a major sustainability initiative by further promoting the purchase and use of electric vehicles (EV) by customers and employees. A 2017 Chevy Bolt, with a range of 238 miles, was purchased for use in various operation centers to test its effectiveness on long-distance travel. Idaho Power vehicle wraps inform and promote the benefits of this sustainable transportation alternative. In addition to adding more EVs to the Idaho Power fleet, employees use of these for work purposes will further promote the financial and environmental benefits of EVs to the public. The Idaho Power CHQ building participated in the Flex Peak Program again in 2017, and committed to reduce up to 200 kw of electrical demand during events. Unlike other program participants, Idaho Power does not receive any financial incentives for its participation. Idaho Power s CHQ participated in all three demand response events in 2017, however, performance was lower than normal due to some changes in the building s automation control system and new facilities personnel. Local Energy Efficiency Funds The purpose of Local Energy Efficiency Funds (LEEF) is to provide modest funding for short-term projects and activities that do not fit within Idaho Power s other energy efficiency programs, but still provide energy savings or a defined benefit to the promotion of energy-efficient behaviors or activities. This is a recent example of a project that qualified for LEEF: a local contractor received funds to manage the installation of an outside air economizer system on a walk-in cooler at small market in Nampa. In lieu of using the mechanical refrigeration system, when the outside air was cool enough, it was introduced directly to maintain the cooler temperature. Evaporator fan controls were installed to cycle fans off when the cooling set point was met. Previously, these fans ran 24-hours a day. LEEF funds paid $900 toward these improvements for an estimated 10,130 kwh savings annually. Through this project, Idaho Power gained valuable insights and is applying successful aspects of this project to other customer facilities. Idaho Power received six LEEF applications in 2017: four from residential customers and two from commercial customers. The residential applications were reviewed and the equipment referenced in the submittal was found to be standard, widely available equipment, and therefore not appropriate for LEEF. For example, one applicant installed a central air conditioner and was seeking funds based on the system s ability to save energy when compared to the previous system. In these instances, a residential program specialist and/or a customer representative followed up with the applicants to provide Page 146

155 Idaho Power Company Other Programs and Activities information on incentives currently available through Idaho Power s energy efficiency programs and to address their specific needs. The two commercial customers requested assistance with LED lighting retrofits. In these cases, a program specialist followed up with the applicants to direct them to incentive information currently available to support their projects. Market Transformation Market transformation is an effort to permanently change the existing market for energy efficiency goods and services by engaging and influencing large national companies to manufacture or supply more energy-efficient equipment. Market transformation can also attempt to identify barriers and opportunities to increase the market adoption of efficiency prior to codes taking effect. Idaho Power achieves market transformation savings primarily through its participation in the NEEA. Northwest Energy Efficiency Alliance Idaho Power has funded NEEA since its inception in NEEA s role in this process is to look to the future to find emerging opportunities and to create a path forward to make those opportunities a reality in the region. NEEA s current, five-year funding cycle began In this cycle, the 2015 to 2019 NEEA business plan is forecast to obtain 145 average megawatt (amw) of regional energy savings at a cost of about $3 million over the next five years to Idaho Power customers as compared to the previous five-year business plan. The NEEA plan also offered some optional programs and activities to prevent overlap of activities when local utilities have the capability to provide the same services at a lower cost or more effectively. Idaho Power participates in all of NEEA s committees and workgroups, including representation on the Regional Portfolio Advisory Committee and the Board of Directors. Most of these groups are involved with either residential or commercial, industrial, and irrigation energy efficiency issues. However, one group, the Idaho Code Collaborative, is involved with both Residential and Commercial sectors. The Idaho Building Code Board requested the Idaho Code Collaborative begin its review of the 2018 codes and present the findings at a future board meeting in Collaborative meetings began in 2017 and will continue into NEEA facilitates the Idaho Energy Code Collaborative meetings, and Idaho Power is a participant. NEEA performs several market progress evaluation reports (MPER) on various energy efficiency efforts each year. In addition to the MPERs, NEEA provides market-research reports, through third-party contractors, for energy efficiency initiatives throughout the Pacific Northwest. Copies of these and other reports mentioned below are referenced in Supplement 2: Evaluation and on NEEA s website under Market Effects Evaluation. For information about all other committee and workgroup activities, see the Residential and Commercial, Industrial, and Irrigation marketing sections below. Page 147

156 Other Programs and Activities Idaho Power Company NEEA Marketing As stated in Idaho Power s agreement with NEEA for the 2015 to 2019 funding cycle: Idaho Power will fund, create, and deliver specific market transformation activities for all initiatives that are relevant for the Idaho Power service area. In 2017, these activities included educating residential customers on ductless heat pumps, and educating commercial customers and trade allies on the Building Operator Certification (BOC), NXT Level Lighting Training, and LLLC. Idaho Power promoted ductless heat pumps as part of its residential marketing campaign. Ads including the product appeared on TV, Hulu, newspaper, online, and Weatherbug. The company also introduced customers to ductless heat pumps through a Facebook post in March. Additionally, a postcard promoting the H&CE Program which mentioned ductless heat pumps was sent to customers in February and August, and a bill insert mentioning the product was sent in April and September. To promote the BOC, Idaho Power published an article in its spring Energy@Work newsletter, and continued with the company s $700 scholarship for customers participating in level-one training. Idaho Power included an article on NXT Level training in its spring Energy@Work newsletter, and heavily promoted the training at nine LED classes. Attendees at the Boise training heard an impromptu testimonial from a trade ally on the benefits of taking the NXT Level training. To promote LLLC, Idaho Power held a pilot class in Boise in April. Regional Portfolio Advisory Committee The Regional Portfolio Advisory Committee (RPAC) is responsible for overseeing NEEA s market transformation programs and their advancement through key milestones in the Initiative Lifecycle. RPAC members must reach a full-consent vote at selected milestones in order for a program to advance to the next stage; members can exercise a challenge flag at any stage if a program goes beyond the scope agreed upon by the committee. RPAC convenes in-person for quarterly meetings and by webinar as needed. In 2017, RPAC met on February 7 and discussed how NEEA staff and funders ensure success of emerging technologies; Regional Strategic Market Planning efforts, including the C+I Lighting one-year progress review and prioritization of HPWHs by the Consumer Products steering committee; and potential opportunities to augment existing NEEA programs with new, related technologies. On May 17, RPAC members voted to advance the Commercial Code Enhancement program to the Market Development phase of NEEA s Initiative Lifecycle. They also thoroughly discussed Dedicated Outdoor Air Systems and the role utilities might play in a successful market transformation program. On August 31, they considered and approved detailed rules for the challenge flag process, and discussed progress updates on manufactured homes and HPWHs. RPAC agreed to cancel the fourth-quarter meeting. Cost-Effectiveness and Evaluation Advisory Committee The advisory group meets three to four times a year to review evaluation reports, cost-effectiveness, and savings assumptions. One of the primary functions of the work group is to review all savings assumptions that have been updated since the previous reporting cycle. The process usually requires a webinar and an all-day meeting. Other activities for 2017 included reviewing NEEA methodologies around adopting NWPCC cost-effective models, reporting of avoided carbon benefits of NEEA savings, and evaluating methodologies around codes and standards initiatives. Page 148

157 Idaho Power Company Other Programs and Activities NEEA Activities: All Sectors Idaho Energy Code Collaborative Since 2005, the State of Idaho has been adopting a state-specific version of the IECC. The Idaho Energy Code Collaborative is a group of individuals with varying backgrounds and levels of association with the building construction industry. The group s work is facilitated by NEEA. The purpose of the group is to make recommendations to the Idaho Building Code Board on the adoption of certain construction and energy codes in the residential and commercial sectors. Idaho Power is a member of this group and participates in the group s meetings. The Idaho Building Code Board convened in 2017 and voted to adopt the 2017 International Energy Conservation code (2015 IECC commercial provisions and 2012 IECC residential provisions with Idaho amendments) effective January 1, The Idaho Building Code Board requested the collaborative review of the 2018 codes and suggested recommendations to the board regarding adoption of codes. The first meeting occurred on November 15, 2017, and additional meetings will occur in Idaho Power participated and offered support in those collaborative meetings, which were attended by members of the building industry, local building officials, code development officials, and other interested stakeholders. The Energy Code Collaborative is an ongoing effort in which Idaho Power will continue to participate. NEEA Activities: Residential Ductless Heat Pump Workgroup Idaho Power continued participating in NEEA s Ductless Heat Pump Workgroup. Its members are primarily employees of electric utilities in the Northwest. The workgroup was formed several years prior to help support NEEA s regional market transformation activities around ductless heat pumps. In early 2017, NEEA assigned a product manager to the ductless heat pumps initiative. This manager is placing a primary focus in two areas: 1) to develop a strategy to reduce the cost of this product to homeowners, and 2) to accelerate the rate of market transformation in the Northwest. This work progressed through 2017 and will continue in Heat Pump Water Heater Workgroup Idaho Power continued participating in NEEA s Heat Pump Water Heater Workgroup. Its members are primarily employees of electric utilities in the Northwest. The workgroup was formed several years prior to help support NEEA s regional market transformation activities around HPWHs. The work in 2017 remained focused on activities to accelerate market transformation. In the first quarter of 2017, the workgroup was asked to assist the Northwest Regional Strategic Market Plan for Consumer Products group, which was also focused on HPWHs. NEEA continued managing regional price promotions, creating marketing collateral, and offering local supply chain training throughout the year while spending dedicated time with key manufacturers. Northwest Regional Strategic Market Plan for Consumer Products Group Idaho Power has been a member of the Northwest Regional Strategic Market Plan for Consumer Products group since its inception in Idaho Power continued its membership in 2017, as well as being a member of its steering committee. The members are primarily employees of electric utilities in Page 149

158 Other Programs and Activities Idaho Power Company the Northwest. The group was formed by NEEA based on NEEA s determination that a strong focus needed to be placed on consumer products to obtain their maximum contributions to Northwest energy efficiency. The goal was to create a high-level plan with subsequent strategies and tactics centered around capturing energy savings within the consumer products segment. In 2017, a determination was made by the group to focus their time and resources on HPWHs. In late fourth quarter, the focus expanded to smart thermostats and residential lighting. Residential Advisory Committee Idaho Power participates in the Residential Advisory Committee (RAC), the Manufactured Homes Interest Group, the Retail Products Portfolio (RPP) Initiative, Efficient Homes Workgroup, the Super- Efficient Dryers Workgroup, and Northwest Regional Retail Collaborative. During 2016, NEEA combined the Efficient Homes Workgroup and the Manufactured Homes Interest Group and renamed it the Better Built NW Workgroup. Idaho Power participated in the RAC, which met quarterly in The purpose of the RAC is to advise NEEA with broad-based advice, experience, and feedback in all residential program matters. This committee provides utilities with the opportunity to give meaningful input into the design and implementation of NEEA programs. NEEA provides Better Built NW builder and contractor training, manages the regional-homes database, develops regional marketing campaigns, and coordinates energy-efficient new construction activities with utilities in Idaho, Montana, Oregon, and Washington. In 2017, NEEA rolled out a custom singlefamily Residential Performance Path program to offer utilities flexibility in program design and the opportunity to capture all above building code savings on residential new construction projects. NEEA will continue to manage the AXIS regional database. NEEA continued to work on an above-code manufactured homes specification, known as NEEM 2.0. This specification will eventually replace the current NEEM 1.1 specification. The Super-Efficient Dryers Initiative was formed to support the acceleration of heat pump dryers into the market. The initiative focuses on influencing manufacturer product development and executing strategies to overcome the barriers of this new technology. Barriers include a high incremental cost, limited consumer awareness, and product availability. The initiative offers incentives to reduce the retail price. In 2017, NEEA conducted market research to assist with the development of a compelling value proposition for consumers to purchase super-efficient dryers. Continued retailer pilots with Blomberg and Whirlpool were offered, providing rebates for the purchase of qualified heat pump dryers and heat pump hybrid dryer units. The RPP Initiative was formed to provide mid-stream incentives to influence retail stocking and assortment practices that would eventually drive manufacturing and standards towards a portfolio of energy-efficient products sold through retail channels. In 2017, there were six participating retailers, with eight qualifying products. There were two tiers assigned to each product: basic and advanced. Incentive ranges were $5 to $50. The incentive is not intended to buy down the purchase, but rather to influence stocking practices. Regional Emerging Technologies Advisory Committee Idaho Power participated in Regional Emerging Technologies Advisory Committee (RETAC), which met quarterly to review the emerging technology pipeline for BPA, NEEA, and the NWPCC Seventh Page 150

159 Idaho Power Company Other Programs and Activities Power Plan. RETAC is developing a regional database to increase coordination among the utilities to identify and track emerging technologies; plan and conduct research; and develop, implement, and assess pilots and field demonstrations. Residential Building Stock Assessment Idaho Power continued participation in the RBSA; its purpose is to determine common attributes of residential homes and to develop a profile of the existing residential buildings in the Northwest. NEEA Activities: Commercial, Industrial, and Irrigation NEEA continued to provide support for commercial and industrial energy efficiency activities in Idaho in 2017, which included partial funding of the IDL for trainings and additional tasks. Commercial Code Enhancement NEEA facilitated regional webinars for the Commercial Code Enhancement (CCE) initiative for new construction to discuss how utilities can effectively align code changes and utility programs. The CCE is a NEEA initiative comprised of a group of people with varying backgrounds and levels of association with the building construction industry. The group s goal is to help enable the continual advancement of commercial construction and energy codes. A subset of this group s work in 2017 included the State Action Plan. This work will continue in NEEA facilitated the conference planning committee and, along with Idaho Power, supported the 2017 Idaho Energy and Green Building Conference held in Boise on October 4 and 5, Idaho Power had two members on the conference planning committee. NEEA s work on SEM in the commercial and industrial sectors continued in The primary focus in 2017 was to consolidate all of the SEM templates, guidelines, and documents into the new SEM Hub website. NEEA s work with RETA on CRES certification process continued in A new CRES contractor was hired in 2017 to work with RETA marketing of the RETA CRES certification, improving the RETA CRES training materials, and improving the RETA CRES practice exams. Idaho Power participated in NEEA s initiatives in the commercial lighting arena via periodic conference calls and in-person meetings. Idaho Power continued as a member of the NEEA Commercial Lighting Program Manager Work Group and the Commercial Advisory Committee. Reduced Wattage Lamp Replacement The Reduced Wattage Lamp Replacement (RWLR) worked with 26 branches across six electrical distributor organizations in Idaho Power s service area. In 2017, the RWLR saw a decline of reducedwattage lamp sales in Idaho Power s service area (preliminary numbers show 40 percent in 2017 compared to 49 percent in 2016). The primary reason for the decline is attributed to the increase in sales of tubular LEDs (TLED). NEEA is re-enrolling distributors into the RWLR program through the end of In early 2019, NEEA will move this initiative to long term monitoring and tracking. Top-Tier Trade Ally The Top-Tier Trade Ally initiative offers lighting trade allies throughout the region the opportunity for multi-tiered training. Regional participants of NXT Level 1 Training was at 115 individuals and 37 companies designated by the end of A marketing and outreach campaign at year-end resulted in Page 151

160 Other Programs and Activities Idaho Power Company 68 new applications to the program, many of which will become designees in In 2017, seven trade allies in the Idaho Power service area received the designation, for a total of 14 trade allies trained to date. Additionally, the regional Online Lighting Basics training continued to be maintained and updated by NEEA. In 2017, 48 individuals throughout the region completed the training (two from Idaho Power service area), resulting in 195 individuals trained to date. Commercial & Industrial Lighting Regional Strategic Market Plan Idaho Power continued participation in the Regional Strategic Market Planning Collaborative for commercial and industrial lighting. Idaho Power was represented on a steering committee formed to monitor and oversee the progress of the regional commercial and industrial lighting plan. Early in 2017, the steering committee participated in a work session to update the regional plan and select priorities for 2017 efforts. Four priority areas were selected: 1) Develop LED retrofit customer guidance document, 2) Collect and communicate lamp pricing data, 3) Understand the evolving supply chain, and 4) Midstream coordination. Idaho Power participated on the first priority area. Luminaire Level Lighting Controls In April 2017, Idaho Power hosted the only Advanced Lighting Controls Training pilot class offered in the region. The class was well received, with 17 electrical contractors in attendance. The DLC piloted classes throughout the country to obtain feedback on course content prior to rolling it out more broadly. NEEA helped sponsor the Boise class. DLC and NEEA used the feedback from the Boise class to finalize the curriculum for additional course offerings throughout the Northwest. By the end of 2017, 10 manufacturers had 14 qualified LLLC systems on the market. This is an evolving market, and NEEA is tracking costs and savings for LLLC as information and data becomes available. NEEA Funding In 2017, Idaho Power began the third year of the 2015 to 2019 Regional Energy Efficiency Initiative Agreement with NEEA. Per this agreement, Idaho Power is committed to fund NEEA based on a quarterly estimate of expenses up to the five-year total direct funding amount of $16.5 million in support of NEEA s implementation of market transformation programs in Idaho Power s service area. Of this amount in 2017, 100 percent was funded through the Idaho and Oregon Riders. In 2017, Idaho Power paid $2,698,756 to NEEA. The Idaho jurisdictional allocation of the payments was $2,563,818, while $134,938 was allocated to the Oregon jurisdiction. Other expenses associated with Idaho Power s participation in NEEA activities, such as administration and travel, were paid from Idaho and Oregon Riders. Final NEEA savings for 2017 will be released in June Preliminary estimates reported by NEEA for 2017 indicate Idaho Power s share of regional market transformation MWh savings for 2017 is 23,652 MWh. These savings are reported in two categories: codes- and standards-related savings of 20,498 MWh and non-codes and standards-related savings of 3,154 MWh. In the Demand-Side Management 2016 Annual Report, preliminary funding share estimated savings reported were 24,616 MWh. The revised estimate included in this report for 2016 final funding-share NEEA savings is 24,353 MWh. These include savings from code-related initiatives as well as non-code-related initiatives. Idaho Power relies on NEEA to report the energy savings and other benefits Page 152

161 Idaho Power Company Other Programs and Activities of NEEA s regional portfolio of initiatives. For further information about NEEA, visit their website at neea.org. Program Planning Group In 2014, Idaho Power convened an internal Program Planning Group (PPG) to explore new opportunities to expand current DSM programs and offerings. The group consists of residential program specialists, commercial and industrial engineers, energy efficiency analysts, marketing specialists, energy efficiency program leaders, and the research and analysis leader. The PPG does not perform program execution. Instead, the group s role is to determine if a measure has energy-saving potential, has market adoption potential, and is potentially cost-effective. If a measure meets those preliminary criteria, it is given to the program teams to implement. Throughout 2017, the group met regularly to explore new ideas to promote energy efficiency, including evaluating new potential programs and measures. Idaho Power incorporated two new ideas from the PPG into the overall portfolio of residential program offerings: HERs and TSV combo units (into kits and other direct-install programs. These offerings will continue to be available in In addition to the offerings that were implemented, the company continued to pursue other new ideas, such as HPWHs, Commercial Energy-Savings Kits, smart strips (for direct-install applications), and a custom home pilot program for new construction. It is anticipated that these offerings should all be launched in early Idaho Power will continue to use the PPG to review, evaluate, and deliver new energy efficiency offerings in 2018 and beyond. Regional Technical Forum The RTF is a technical advisory committee to the NWPCC, established in 1999 to develop standards to verify and evaluate energy efficiency savings. Since 2004, Idaho Power has supported the RTF by providing annual financial support, regularly attending monthly meetings, participating in sub-committees, and sharing research and data beneficial to the forum s efforts. The forum is made up of both voting members and corresponding members from investor-owned and public utilities, consultant firms, advocacy groups, Energy Trust of Oregon, and BPA, all with varied expertise in engineering, evaluation, statistics, and program administration. The RTF advises the NWPCC during the development and implementation of the regional power plan in regards to the following listed in the RTF charter: Developing and maintaining a readily accessible list of eligible conservation resources, including the estimated lifetime costs and savings associated with those resources and the estimated regional power system value associated with those savings. Establishing a process for updating the list of eligible conservation resources as technology and standard practices change, and an appeals process through which utilities, trade allies, and customers can demonstrate that different savings and value estimates should apply. Developing a set of protocols by which the savings and system value of conservation resources should be estimated with a process for applying the protocols to existing or new measures. Page 153

162 Other Programs and Activities Idaho Power Company Assisting the Council in assessing: 1) the current performance, cost, and availability of new conservation technologies and measures; 2) technology development trends; and 3) the effect of these trends on the future performance, cost, and availability of new conservation resources. Tracking regional progress toward the achievement of the region s conservation targets by collecting and reporting on regional research findings and energy savings annually. When possible, Idaho Power uses the savings estimates, measure protocols, and supporting work documents provided by the RTF, and when the work products are applicable to the climate zones and load characteristics in Idaho Power s service area. In 2017, Idaho Power staff participated in all RTF meetings as a voting member and the RTF Policy Advisory Committee. Measure changes enacted for existing and possible new measures are reviewed throughout the year for potential impacts to programs and measures. All implementations of changes were accounted for in planning and budgeting for Residential Energy Efficiency Education Initiative Idaho Power recognizes the value of general energy efficiency awareness and education in creating behavioral change and customer demand for, and satisfaction with, its programs. The Residential Energy Efficiency Education Initiative (REEEI or the initiative) promotes energy efficiency to the residential sector. The company achieves this by creating and delivering educational materials and programs that result in wise and informed choices regarding energy use and increased participation in Idaho Power s energy efficiency programs. Project Tiny House In 2017, Idaho Power collaborated with Metro Community Services (Metro) and Canyon-Owyhee School Service Agency (COSSA) to build a tiny house. Idaho Power provided $3,500 for the purchase and installation of a ductless heat pump. Metro is an Idaho nonprofit that helps seniors, low-income people, and those with disabilities. COSSA is a trade and craft high school with students from Marsing, Homedale, Notus, Parma, and Wilder. Metro supplied or secured the remaining supplies, and the COSSA students learned various aspects of construction through hands-on building of the tiny house. The completed tiny house was displayed at trade shows and other promotional events within Idaho Power s service area. Approximately 10 students in grades 10 through 12 worked on the home from November 2016 through June 2017, which was raffled off in August to raise funds for senior services. Page 154

163 Idaho Power Company Other Programs and Activities Figure 37. Tiny house Idaho Power s promotion of Project Tiny House included custom signage to hang inside the home highlighting the energy-efficient features. The company also held a check presentation event that was promoted on social media and ran an article in the April issue of Connections. Additional promotion included an article in the July 31 issue of News Scans. The tiny house proved to be of great interest to curious customers at a variety of events. This gave an opportunity for customers to see what a ductless heat pump looked like installed in a wall and to feel the air conditioning it could provide. The home also provided opportunities to talk about various other energy efficiency measures, such as LED lighting and low-flow showerheads, as well as measures that are not readily visible, such as spray foam insulation. Several lessons were learned through this project, including what type of events are most useful for engaging with customers. Using lessons learned, a second tiny house project was started in late 2017 coinciding with the start of the school year. The home will again feature a ductless heat pump, as well as various other energy efficiency measures. This second home is expected to be complete in spring 2018 to allow for display at spring home events. Kill A Watt Meter Program The Kill A Watt Meter Program remained active in Idaho Power s Customer Service Center and field staff continued to encourage customers to learn about the energy used by specific appliances and activities within their homes by visiting a local library to check out a Kill A Watt meter. The Kill A Watt meters were mentioned once again on live television studio news programs on KTVB and KPVI in Idaho Power s monthly energy efficiency segments. Late in the year, Idaho Power contacted participating libraries to determine what, if any, replacements were needed. The library kits will be replenished and refreshed in Teacher Education As in previous years, Idaho Power continued to strengthen the energy education relationship with secondary school educators through continued participation on the Idaho Science, Technology, Page 155

164 Other Programs and Activities Idaho Power Company Engineering, and Mathematics (istem) Steering Committee. In 2017, 18 teachers completed the four-day, two-credit professional development workshop offered at the College of Western Idaho s istem Institute. The workshop, Energy, Electricity, and Efficiency, Oh My!, was facilitated by Idaho Power and co-sponsored by Intermountain Gas and the Idaho National Laboratory (INL). Among other things, participating teachers toured the Langley Gulch power plant and received a classroom kit containing Kill A Watt meters and other tools to facilitate student learning related to energy efficiency and wise energy use. Program Support In 2017, 50,739 ESKs were shipped with a mini-home assessment to cross-market other energy efficiency programs, promote the use of My Account, and help families learn about other energy-saving behavior changes. Savings and expenses have been reported in the Educational Distributions residential program section of this report. The initiative continued to coordinate LED lightbulb distributions aimed at providing the newest lighting technology to customers along with education and answers to their common questions. At events and presentations, company staff distributed almost 22,500 LEDs in custom packaging that highlighted the advantages of energy-efficient lighting and encouraged participation in Idaho Power s My Account online portal. Customer representatives throughout the service area also handed out 2,400 Giveaway kits containing nine LED lightbulbs and other educational materials in conjunction with energy efficiency presentations and workshops. The energy savings resulting from these efforts and from the SEEK program for the school year are also reported in the Educational Distributions residential program section of this report. In July 2017, the initiative implemented the HER Pilot Program, including nearly 27,000 participants across the service area. The customized reports, delivered to customers at regular intervals, showed customers how their energy use compared to other homes in their respective communities with similar characteristics (i.e., home size, type, and heating source). In addition to the comparisons, the HERs provided each participant with a personalized breakdown of how electricity is used in his/her home (disaggregated energy use) along with customized energy-saving tips and suggestions. In the introductory letter, participants were encouraged to go to My Account to update their home profiles to enhance the customized information in their HERs. During this pilot phase, customers were classified into two groups: the HER year-round group and the HER winter-heating group. Customers with year-round low, medium, and high electricity use, were placed in the first group, and customers with high winter electricity use due to electric heating were placed in the second group. Idaho Power is trying to determine which group has the highest potential for achieving cost-effective savings. The savings and customer satisfaction results are scheduled to be evaluated in July of Marketing REEEI continued to produce semiannual Energy Efficiency Guides in Idaho Power distributed these guides primarily via insertion in local newspapers and at events across Idaho Power s service area. The winter Energy Efficiency Guide was published and distributed by 17 newspapers in Idaho Power s service area the week of February 12; the Boise Weekly also inserted the guide. The guide was designed Page 156

165 Idaho Power Company Other Programs and Activities as a primer for energy efficiency and efficient behavior choices. It focused on energy basics, sustainable choices, and ways to save around your home. The information was applicable to all residential customers, but the design was adapted and enhanced for particular usefulness and appeal to first-time home owners and renters. Idaho Power included a story from the guide in the January News Briefs and News Scans and promoted it that month on KPVI during the energy efficiency news segment. Figure Winter Energy Efficiency Guide Native ads (a piece of writing that resembles editorial content but is paid for by an advertiser) promoting the guide ran on the Idaho Statesman website February 12 through February 20, and served 65,629 impressions with a click-through rate of 0.11 percent. Banner ads targeted to all customers were used to promote the guide as well as two print ads in the Idaho Statesman. A Facebook boost was also used to promote the guide to Idaho Power followers. The summer Energy Efficiency Guide was delivered to nearly 200,000 homes the week of July 30, This guide highlighted the significant impact weather can have on energy bills, how to use My Account to understand and predict how energy-efficient choices and behaviors can reduce electricity bills, and ways efficient home features can be used to make good choices when buying and selling a home. The release of the summer guide received public relations support through numerous communication channels, including an item in Idaho Power s weekly News Briefs to all media in the Idaho Power service area on August 8; promotion in News Scans; on Idaho Power s social media accounts; and in digital ads targeted to customers in the service area. The ads ran August 6 through August 20 and yielded 330,863 impressions with an average click-through rate of 0.12 percent. Both of the 2017 guides were translated into Spanish to help reach the larger Idaho Power customer base. In 2017, the company distributed over 7,000 guides, including issues from past years, at energy efficiency presentations and events. The popularity of the guides points to their continued educational value for customers. On its website, Idaho Power provides a link to the most current seasonal guide, as well as links to past guides. REEEI distributed energy efficiency messages through a variety of other communication methods during Idaho Power increased customer awareness of energy-saving ideas via continued Page 157